Australian packaging company Amcor has received approval from the European Commission for the proposed $6.8bn merger with US-based flexible packaging major Bemis in an all-stock combination.
Amcor signed the deal in August following approval from the boards of directors of both companies to acquire Bemis.
The commission has conducted an investigation into how the deal would affect competition for the supply of flexible packaging materials for medical use and food products in the European Economic Area (EEA). It determined that the deal would raise no competition concerns.
Approval is conditional following the divestment of Bemis’s European medical packaging business, which covers three plants in the UK and Ireland.
The three facilities are expected to generate around $170m annual revenues through the sale of flexible packaging for certain healthcare products.
According to Amcor, the approval preserves its European healthcare packaging business and expands its presence in high-value end markets.
Both companies are currently in advanced talks.
In a statement, Amcor said: “The process toward securing required antitrust clearances and other regulatory consents in all jurisdictions, which are conditional to closing, have either been completed or are progressing in line with expectations.”
The companies expect to close the deal in the second quarter of this year.
Amcor offers a broad range of rigid and flexible packaging products for customers in food, beverage, medical, pharmaceutical, personal care and other consumer goods sectors.
Bemis provides rigid and flexible packaging solutions for food, consumer, medical, pharmaceutical and other industries.