Tetra Laval's Simonazzi acquisition approved

- Last updated on GMT

Related tags: European union, Tetra laval

Further consolidation in the packaging industry will occur after
the European Commission approved Tetra Laval's planned acquisition
of SIG Simonazzi.

Tetra Laval​, the number one packaging company in the world, hopes to use the acquisition to expand its business in the beer industry.

SIG Simonazzi, a unit of the SIG Group, is an Italian filling and packaging company. The Commission said yesterday the two companies aseptic and non-aseptic filling operations overlapped in someareas of the European Economic Area (EEA).

However the Commission concluded that the operation will not result in a "significant impediment to effective competition" within the EEA. The EEA is made up of the 25 EU members alongwith Norway, Iceland and Liechtenstein.

"The Commission has investigated the effects of the planned operation on the aseptic PET and HDPE filling machines markets and also on the non-aseptic PET filling machines market,"​according to a statement. "It found that the merged company will continue to face a number of competitors who are active in these markets. Moreover the customers have indicated that there willremain alternative suppliers able to provide them with the machines required and therefore have expressed no concern about the operation."

The Commission also assessed whether the two companies would gain a more complete range of products leading to competitive harm for their customers.

"Such a scenario was ruled out as the new entity would not command significantly higher market shares than its competitors and there would remain other competitors with broad portfolio ofproducts,"​ the Commission stated.

Tetra Laval sells processing, packaging and distribution systems for food products. The company also makes carton packaging, equipment and systems for milk production and animal husbandry. Thecompany's Sidel unit makes blow moulding machinery, barrier technology and filling machines for plastic bottles.

Simonazzi's Target unit makes machines for processing, aseptic and non-aseptic filling and final packaging of beverages in plastic, glass and can containers as well as labelling machines.

In a statement Tetra Laval said Simonazzi had €320m in sales last year. Simonazzi has operations in 20 countries.

Tetra Laval is a privately-held company headquartered in Switzerland. The company has three units: Tetra Pak, DeLaval and Sidel. Simonazzi will be integrated with the company's Sidel unit.

SIG Group will keep its carton packaging and filling machines operations, along with its Asbofill business, stretch blow moulding equipment, semi-liquid food equipment and can production lines.

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