The European Commission has approved, under the EU Merger Regulation, the merger between Amcor and Bemis – both are global manufacturers of packaging solutions, supplying a broad range of rigid and flexible packaging products.
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The Commission examined the effects of the proposed transaction on competition in the markets for the supply of flexible packaging for medical use and food products in the European Economic Area, where the activities of Amcor and Bemis overlap.
As regards flexible packaging for medical use, the merged entity would have created a player three times larger than the second largest supplier, on a fragmented market with many small suppliers. The Commission did express concern that the transaction as notified would negatively affect competition on the market for flexible packaging for medical use, and could lead to higher prices, less choice and less innovation.
As regards flexible packaging for food products, the Commission concluded that the proposed merger would raise no competition concerns due to the presence of a large number of alternative suppliers, lower barriers to entry and because it is easier for customers to switch to alternative suppliers.
To address the Commission's competition concerns, Amcor and Bemis offered to divest Bemis’ entire medical packaging business in the EEA.
The commitments fully remove the entire overlap between the companies' activities in the supply of flexible packaging for medical use in the EEA. Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns in the EEA. The decision is conditional upon full compliance with the commitments.
Given the worldwide scope of the companies' activities, the Commission has cooperated closely with the US Department of Justice.
