DOW JONES NEWSWIRES
The U.S. Justice Department announced a deal that will require
Amcor Ltd. (AMCRY, AMC.AU) to sell a North Carolina plant as a
condition of acquiring the Alcan packaging business of Rio Tinto
PLC (RTP, RIO.LN).
The A$2.44 billion ($2.07 billion) deal will make Amcor one of
the world's largest packaging companies, with a market-leading
position in flexible packaging, folding cartons for tobacco and
custom PET plastic containers.
The Justice Department said in a statement Thursday that the
acquisition as originally proposed "would lead to higher prices,
lower quality, less favorable supply-chain options, reduced
technical support and less innovation." The companies are two of
the leading U.S. manufacturers of vented bags for medical use, and
the North Carolina plant makes medical bags.
In December, the European Commission approved the deal after
requiring Amcor--the world's largest maker of plastic soft-drink
bottles--to sell two flexible-packaging plants in Spain.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com