South African paper and packaging company Mondi Group has secured European Union (EU) regulatory approval for its $782m acquisition of packaging company Nordenia in Germany from private equity firm Oaktree Capital.
According to Mondi, the acquisition is expected to boost its presence in consumer packaging and will also result in €15m in annual pre-tax cost synergies. The company would reorganise its Europe and international division into four businesses, namely uncoated fine paper, packaging papers, fibre packaging and consumer packaging, upon concluding the acquisition.
The commission's investigation confirmed that the operation will not significantly alter the structure of the markets concerned and would not raise competition concerns. The merging parties will have a relatively limited combined market position and the deal would not hurt competition.
Nordenia, which manufactures flexible packaging, plastic films and film-based products, makes more than 90% of its revenues from the packaging and components of consumer products including pet food, diapers and chocolate bars.
The company has operations across Europe, North America and Asia, but draws nearly 60% of its sales from Western Europe.
