The UK Office of Fair Trading (OFT) has closed submissions regarding any concerns in relation to Graphic Packaging Holding Company and its acquisition of Benson Group.
The firm announced its European subsidiary will buy Benson Group , a food and healthcare packaging company, which has four folding carton facilities in the UK, for $165m in February.
The Enterprise Act 2002
The OFT invited people to send written representations about any competition or public interest issues in the supply of folding carton board packaging as part of the merger provisions of the Enterprise Act 2002.
Carla Chaney, senior VP human resources, Graphic Packaging Holding Company, told FoodProductionDaily it is excited about the acquisition of Benson Group because ‘it’s a great fit for our business’.
“We clearly see this moving forward now that the OFT date has closed for submissions. We have not set a closing date but we are positive there will not be any significant issue,” she said.
“We are still abiding by all regulatory restrictions and we will aggressively move forward with our new structure.
“Benson Group is in a segment that we are not and it fits perfectly with our European growth strategy.”
Kellogg’s & Nestlé
The Benson Group operates four facilities that convert about 80,000 tons of paperboard a year.
Clients include Kellogg’s, Nestlé, General Mills, Heineken, SABMiller and AB InBev.
The deadline for informal submissions closed on March 12.
The OFT said in a statement: ‘The Office of Fair Trading is considering whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom.’