Pact Group's acquisition of Synergy Packaging not opposed by ACCC

The Australian Competition and Consumer Commission (ACCC) has announced that it will not be opposing Pact Group’s acquisition of Synergy Packaging. Pact Group makes packaging with an emphasis on sustainability and Synergy is a company that makes smaller orders of jars, bottles and closures.

Pact had previously proposed an acquisition of Synergy; the ACCC initiated an investigation of the deal based on potential issues of market competition. It began in April, with the ACCC requesting commentary from the public about the acquisition.

“Our investigation concluded that Pact is not a close competitor of Synergy and the acquisition was not likely to substantially lessen competition,” ACCC Commissioner Stephen Ridgeway said.

“Synergy offers short product runs to small and medium business customers, and Pact primarily services larger customers with high-volume orders.”

Pact Group and Synergy Packaging both produce various kinds of packaging and specialise in a circular plastics economy using recycled PET. The ACCC noted that while the two companies’ supply of packaging overlaps in the provision of certain rigid containers, Pact targets a different, larger sector of the market, whereas Synergy focuses on smaller customers, with orders as low as five units being possible.

The ACCC notes that while feedback pondered the possibility of Synergy’s strategy shifting away from concentrating on smaller markets with the acquisition, alternative businesses would remain for those customers.

Source: https://www.foodprocessing.com.au/content/business-solutions/news/pact-group-s-acquisition-of-synergy-packaging-not-opposed-by-accc-564445653