US Justice Department clears £5.3bn Amcor and Bemis merger transaction
May 31, 2019The US Department of Justice (DOJ) has approved the $6.8bn (£5.3bn) proposed merger of packaging firms Amcor and Bemis. The department said that Amcor is required to divest three manufacturing facilities and other assets to proceed with the acquisition of Bemis.
In a statement, the department said: “Without the divestiture, the proposed acquisition would eliminate competition between two of only three significant suppliers of three medical packaging products that are critical to the safe transportation and use of medical devices.”
The two firms plan to close the transaction on 11 June 2019, as all antitrust and other regulatory clearances have been received.
Amcor agreed to sell its three manufacturing facilities units to Tekni-Plex in April 2019 in a deal valued at around $215m.
Amcor disposed certain assets to resolve specific antitrust concerns raised in the US associated with the proposed merger of Amcor and Bemis.
In August 2018, Amcor agreed to buy Bemis in an all-stock transaction worth $6.8bn. Under the terms of the deal, Amcor shareholders will own 71% stake in the combined company, while the remaining 29% interest will be owned by the Bemis shareholders.
The combined firm is expected to play a crucial role in the consumer packaging segment, in addition to providing significant value for shareholders, customers and employees, the firms said.
