Tetra Laval given merger go-ahead
approval for its proposed merger with French beverage machinery
manufacturer Sidel. The decision means that Tetra is now poised to
develop one of the largest PET production capabilities in Europe.
After a 15-month long battle, Tetra Laval has finally received approval for its proposed merger with French beverage machinery manufacturer Sidel. The decision means that Tetra is now poised to develop one of the largest PET production capabilities in Europe.
In a press statement the company said that it welcomed the EU commission's decision to clear the acquisition.
Commenting on the decision, Larry Pillard, chairman of the Tetra Laval Group Board, said, "We are very pleased that the Commission has accepted our arguments in this case. Although this has been a lengthy and at times difficult process, we have remained confident that a positive outcome could be achieved.We now very much look forward to welcoming Sidel as a separate industry group within Tetra Laval. The acquisition will enable us to provide the world's leading producers of liquid food with state of the art plastics equipment.
"Today's approval is also highly relevant for European mergers and acquisitions in general, demonstrating that the oversight and guidance of the Court of First Instance can have a practical and beneficial impact for companies wishing to expand their scope of business."
The decision will undoubtedly cause embarrassment for the European Competition Commissioner, Mario Monti, who originally overturned Tetra's attempts to acquire Sidel. Monti's Commission panel denied the original application on the grounds that Tetra's existing interests in the European PET bottling industry could be tantamount to a monopoly of the market.
The decision will also mark the first time that such a reversal will then go ahead. Similar reversals have caused too much delay for the planned acquisitions to proceed.
Tetra Laval SA is part of Tetra Laval, which comprises Tetra Pak and DeLaval. Altogether the companies employ 24,000 people, with operations in more than 165 countries in all continents and had net sales of € 8.4 billion in 2001. The companies' activities are focused on processing and packaging systems for production and distribution of liquid food and accessories for dairy production and animal husbandry.
Sidel is currently one of the world's leading manufacturers of machines for plastic bottle production. Its products are used in the beverages, agri-foodstuff, cosmetics and pharmaceuticals industry. The company has 4,000 employees working in 24 countries and had net sales of €933 million in 2001.
