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No ACCC action on Visy’s plastics buy

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THE Australian Competition and Consumer Commission (ACCC) has decided not to intervene in the acquisition of ACI Plastics Packaging's non-beverage container and closure businesses by Visypak Packaging.

The regulatory body’s chairman Graeme Samuel said there were a range of current and potential suppliers for non-beverage plastic containers in Australia.

"Customers will also have the opportunity to look at using different packaging materials, such as glass, metal and paper products,” he said. “In addition, large customers are likely to remain in a good negotiating position vis-a-vis the merged entity.”

Samuel said some concern might exist over the availability of particular types of plastic containers that suited customer's packaging and marketing preferences,

"But the ACCC needs to examining mergers and acquisitions in the context of an appropriately defined market," he said. "In this case, it considered that to be for non-beverage rigid plastic containers."

Samuel said in terms of the supply of plastic closures, Australia imported between 30 and 35 per cent of the total plastic closures sold, which provided a significant competitive constraint on the merged entity.

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