Tetra Laval pushes EC for decision
Commission to speed up its decision making process regarding the
€1.7bn proposal to buy up French plastic bottle maker, Sidel.
Swedish-based packaging group Tetra Laval has urged the European Commission to speed up its decision making process regarding the €1.7 billion proposal to buy French plastic bottle maker, Sidel.
The deal was frozen by the EC last year as a battle broke out between the two companies regulators.
But the European Commission was forced to make an embarrassing withdrawal of its refusal to okay the deal, when it was decided that the it might not contravene competition laws.
According to a report in the Financial Times, Tetra Pak now wants to try and complete the deal quickly, following the EC's original veto of its proposed takeover back in October. The decision meant that the shares that the company already held in Sidel had to be put into a trust until the appeal was finished.
If the veto is completely overturned and Tetra go ahead with the deal it will be the first time that an overturned takeover bid has been resumed.
"Tetra has the right to benefit from the timetables of the EU merger regulation," Tetra said in a press statement. "A speedy process is indispensable in order to preserve the efficacy of merger decisions," the company added.
Under current laws the Commission now has one month to reach its final conclusion. A decision is now expected by January 13.
Tetra claims that it has already sold off two related businesses in an attempt to allay the EC's concerns over the contravention of competition laws.
Most competition experts expect Brussels to go ahead and clear the deal, however further objections could still lengthen the delay in the deal's approval.
