Amcor's acquisition of Detmold packaging business passes ACCC review

Amcor’s proposed acquisition of Detmold Group’s Australian flexible packaging business will not be blocked by the Australian Competition and Consumer Commission (ACCC), the competition watchdog has announced.

Amcor and Detmold are competitors in the supply of value-added flexible packaging, particularly to manufacturers of fast-moving consumer goods (FMCGs).

“The ACCC concluded that the acquisition of Detmold’s Australian flexible packaging operations would be unlikely to substantially lessen competition,” said ACCC Chairman Rod Sims.

“In reaching its decision, the ACCC determined that actual and potential import competition was likely to continue to provide a strong constraint on Amcor following the acquisition.”

The ACCC found that FMCG manufacturers successfully manage their supply chains by importing value-adding, flexible packaging, meaning that Amcor will likely not monopolise the Australian market by acquiring Detmold’s flexible packaging business.

FMCG manufacturers benchmark local suppliers’ pricing against the cost of imported product and use the lower cost of imported product as a bargaining tool for lower domestic prices, the ACCC’s review found.

“Local manufacturers of flexible packaging can also provide an important competitive constraint on large firms,” Sims said.

“However, market inquiries did not indicate that Detmold had been a particularly effective competitor nor had it received widespread customer support.”

Amcor acquired Aperio Group in 2012 following a detailed ACCC review.