EU Regulators OK Sale of Lydney Mill to Glatfelter
Dec. 20, 2006 - Glatfelter today said that the European Commission granted unconditional anti-trust approval to the company's acquisition of the Lydney Mill located in Gloucestershire, United Kingdom.
Following a Phase II investigation, EU regulators concluded that the acquisition "would not impede effective competition."
Initially, the Commission feared the proposed deal would create a dominant market player with the ability to restrict production of tea and coffee filter papers (wetlaid fiber materials) and drive up prices in the industry
Competition Commissioner Neelie Kroes said, “I wanted in particular to make sure that final consumers would not have to pay higher prices for everyday products like teabags. I am now satisfied that the prices for wetlaid fibre will not rise as a result of the merger.”
During the regulatory review, Glatfelter had operated the Lydney Mill as a stand-alone business.
With the regulatory approvals in place, Glatfelter said it will now integrate the Lydney Mill into its Composite Fibers business unit.
The Lydney mill, in Gloucestershire, southwest England, produces tea and coffee filters, vacuum cleaner bags, wet wipes and substrates for double-sided tape.
SOURCE: Industry Reports