Amcor Ltd
(ASX:AMC) says it has received European Commission approval for its acquisition of the European businesses of Alcan Packaging that it is purchasing from Rio Tinto Plc.
The company says a condition of this approval is it agreeing to divest its Tobepal operation comprising two plants that have combined sales of approximately 110 million Euro’s and produce a range of pharmaceutical, personal care and food packaging products.
The divestment undertaking is required to meet the European Commission’s concern relating to pharmaceutical sachet and aluminium cold-form foil products.
CEO Ken MacKenzie says receiving approval from the European Commission is an important step toward closing the Alcan Packaging acquisition.
Mr MacKenzie says the two plants to be divested represent less than 5% of the combined sales in Europe and will not have a material effect on the synergies or operational improvements anticipated.
Amcor says the combined Amcor and Alcan Packaging businesses in Europe currently have sales of approximately US$4.8 billion in 75 plants.
Amcor posted profit of $211.7 million in fiscal 2009.
