Mondi Terminates Proposal to Buy Extrusion Coatings Plants from Walki
"Extrusion coatings remain a core part of Mondi's business and product portfolio and Mondi will continue to operate its extrusion coatings business as before . . ." – Mondi.
Dec. 15, 2015 - Mondi Group announced that it has terminated its May 22 proposal to acquire two extrusion coatings plants owned by Walki Group.
In September of this year, the European Commission raised concerns that Mondi's acquisition of Walki's plants could lead to less choice and higher prices for customers of certain packaging materials used for example to transport and protect fresh food or paper and that the deal would not meet with the EU Merger Regulation.
At that time, Commissioner Margrethe Vestager, in charge of competition policy, commented, "The proposed merger could remove a key competitor for several types of packaging material. These are used in everyday items such as food packaging. I am concerned that the merger would lead to higher prices and less choice for these companies' clients and that the price increases could ultimately be passed on to consumers."
Walki's two extrusion coatings plants are located in Pietarsaari, Finland and Wroclaw, Poland.
In a written statement, Mondi said, “Mondi and Walki have been in discussions with the European Commission about ways to alleviate concerns related to the impact on the competitive environment. However, no workable solution suitable for all parties has been found and therefore Walki and Mondi have decided to withdraw the application to the Commission and terminate the acquisition agreement.
“Extrusion coatings remain a core part of Mondi's business and product portfolio and Mondi will continue to operate its extrusion coatings business as before to the benefit of its customers and other stakeholders,” the company added.
Mondi is an international packaging and paper group. The group operates as two divisions: Europe & International, and South Africa. To learn more please visit: www.mondigroup.com.
See related stories:
» Mondi Group to Acquire Two Extrusion Coatings Facilities from Walki for EUR 60 Million (5/28/2015)
» European Commission Looking Into Mondi's Proposed Acquisition of Walki's Extrusion Coating Plants (9/9/2015)