Amcor Limited (ASX: AMC) and Bemis Company, Inc. (NYSE: BMS) announce an important step toward closing theirall-stock transaction,with approval received from the European Commissionon 11 February 2019.
A condition of this approval is an agreement to divest three Bemis plants located in the United Kingdom and Ireland. Combined these plants generate approximately USD 170 million of annual revenue from the sale offlexible packaging for certain healthcare products. This approval preserves Amcor’s European healthcare packaging businesswhich is substantially larger and participates in attractive, high value end markets.
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 transaction remains subject to regulatory approval in the United States and Brazil, and the companies are in advanced discussions with regulators in both countries. Those advanced discussions include the potential for required remedies. Inclusive of remedies required by the European Commission, collectivepotential remedieswould represent an immaterial proportion of the total sales for the combined company and wouldnot impactthe USD 180 million of net cost synergies expected to be delivered by the end of the third year following completion.Thetransaction is expected toclose in thesecond quarter of calendar year 2019.
Quelle: Amcor
