European packaging products manufacturer Ardagh has agreed with the US Federal Trade Commission (FTC) to sell six of its nine US glass container manufacturing plants in order to acquire Saint-Gobain for $1.7bn.
The FTC was not in favour of the transaction, saying that it would lead to unfair competition in both the beer and spirits glass container markets and result in a price rise of the containers.
The two firms had entered into a definitive share purchase agreement related to the transaction in January 2013.
In an effort to prevent customers from an unfavourable market situation, a lawsuit was filed by the commission in July 2013 to stop the proposed acquisition.
More recently, the FTC proposed a settlement through which it wanted the European packaging firm to sell its six manufacturing units and associated assets purchased from Anchor Glass in 2012. The six units are located in New York State, Jacksonville, Georgia, Oklahoma, Indiana and Minnesota.
FTC bureau of competition director Deborah Feinstein said that the settlement would save competition in the drinks container markets.
"The remedy we achieved in this matter reflects the Commission’s willingness to litigate on behalf of consumers until all competitive concerns have been addressed," Feinstein added.
After completion of the transaction, Ardagh will operate 113 units in 26 nations and have 22,000 new employees.
Image: Ardagh will sell six glass container manufacturing units to settle the FTC litigation. Photo: courtesy of 9comeback /FreeDigitalPhotos.net.