Ruling expected soon on Sidel
plans to acquire French packaging firm Sidel, the European Court of
Justice will rule on 25 October on whether the deal can be allowed
to proceed.
Nearly a year after the Swedish company Tetra Laval announced its plans to acquire French packaging firm Sidel, the European Court of Justice will rule on 25 October on whether the deal can be allowed to proceed.
The European Commission originally blocked the merger on the grounds that the new company would have a dominant position in the cardboard packaging sector, and that it would be able to use this to create a similar dominance in PET packaging.
Tetra Laval argued that the cardboard and PET markets were completely different, and put forward a number of possible alternatives to alleviate the Commission's fears in this regard. But the Commission apparently ignored these suggestions, prompting Tetra Laval to appeal against the decision.
The Swedish company's arguments were heard in July this year, and the company is hopeful of a positive reaction from the courts later this month.
Tetra Laval offered €1.7 billion for Sidel in October last year, arguing that the deal would allow it to extend its presence in plastic packaging. Tetra Laval is the world's leading processing, packaging and equipment company for liquid food products.
