The phase 1 probe will determine if the $1.45bn deal could result in a significant reduction in competition in the UK for either goods or services
A fibre-based barrier tray for fresh vegetables and fruits from AR Packaging. (Credit: AR Packaging)
The UK Competition and Markets Authority (CMA) has launched a phase 1 inquiry into Graphic Packaging’s previously announced $1.45bn acquisition of Swedish packaging firm AR Packaging Group.
The British competition watchdog will probe if the transaction could lead to a significant reduction in competition in the UK for either goods or services.
A commencement notice issued by the CMA reads: “The Competition and Markets Authority (CMA) hereby gives notice pursuant to section 96(2A) of the Act that the merger notice provided by Graphic Packaging International Europe Holdings B.V., Graphic Packaging Holding Company and AR Packaging Group AB in relation to the anticipated acquisition by Graphic Packaging Holding Company of AR Packaging Group AB (the Merger) meets the requirements of section 96(2) of the Act.”
In order to help with its assessment, the CMA is seeking comments on the deal from any interested party. The invitation to comment closes on 1 September 2021.
The competition watchdog expects to decide on the phase 1 investigation by 13 October 2021.
The all-cash deal between Graphic Packaging and AR Packaging Group was announced in May 2021. Currently, the latter is owned by CVC Capital Partners Fund VI.
AR Packaging Group is a fibre-based consumer packaging solutions provider. The company has net sales of around $1.1bn, and a workforce of about 5,000 employees.
It operates 30 factories, which are located across 13 countries.
On the other hand, the US-based Graphic Packaging also provides fibre-based packaging solutions. The company’s packaging solutions are used by food, beverage, foodservice, and other consumer products firms.
By acquiring the Swedish firm, Graphic Packaging expects to consolidate its global positioning and grow its scale in the large and growing fibre-based consumer packaging markets in Europe.