The European Commission (EC) has given the all-clear to Antalis' acquisition of Dutch paper merchant Map Merchant on the condition that it sells off its UK paper merchant Premier Paper.
The EC decided that the larger company would not "not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it."
In the UK, Antalis would have owned a third of the market through James McNaughton and Premier Paper divisions. Together with PaperlinX, the groups would have controlled around 75%, according to the EC.
Competition Commissioner Neelie Kroes said “Fine paper distribution is an important market for a wide variety of sectors, including publishing. The commitment offered by the parties was crucial to protect effective competition in the UK”.
As reported by PrintWeek last week, the likely outcome is for Premier Paper to undergo a management buyout (MBO).
One of the concerns voiced by commentators about the possibility of an MBO was a potential distribution problem for Premier, once it had severed its relationships with Map Merchant and its gm2 logistics service.
However the deal brokered by the EC includes a provision to offer any new owner "a logistic service contract with Antalis UK’s logistics arm, gm2, in addition to acquiring Premier's own logistic capabilities".
The £258m takeover, proposed earlier this year, will give Antalis ownership of M-Real's paper merchant Map Merchant, creating a £2.5bn paper giant.
What are your thoughts on how the deal with impact the UK? Add your comments below.
Source: printweek
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment