The Australian Competition & Consumer Commission (ACCC) has opened an investigation into 'competitive impacts' of global giant Nippon Paper’s $1.7 billion proposed acquisition of Orora’s paper packaging assets. Japan's Nippon already owns Australian Paper, the country’s only manufacturer of printing and packaging papers.
The deal announced in October 2019 – which covers Orora’s Australian paper and recycling, fibre packaging and sacks and bags businesses - came the same week as Visy said it would buy Norske Skog’s newsprint mill in Albury and convert it to board manufacturing.
“Barely had the paper, paperboard and fibre supplies digested one and it was immediately dealing with the next transaction in what for the entire Australian fibre industries is little short of an October Revolution,” said pulp and paper industry researcher IndustryEdge at the time.
In a statement on its website, the ACCC said it had commenced an inquiry on 2 December into “the impact on competition” of the deal. The corporate regulator said the proposed deal was now ‘under consideration.’
“Submissions are invited from interested parties regarding the proposed acquisition. The closing date for submissions is 16 December 2019,” it said.
“The ACCC’s investigation is focused on the impact on competition. In particular, we are seeking your views on:
- whether converted packaging product manufacturers have alternative options for sourcing packaging paper products,
- whether Australian Paper and Orora Fibre currently compete to supply paper products used in converted packaging product manufacture, and/or to supply converted packaging products, and
- whether the prices of packaging paper products, or converted packaging products, will increase.”
Submissions should be forwarded electronically (preferably in PDF format) to mergers@accc.gov.au with the title "Submission re: Australian Paper’s proposed acquisition of Orora Fibre - attention Alex Reed / Nadia Vassos." Alternatively, submissions may be mailed to the Merger Investigations Branch, ACCC, GPO Box 3131 Canberra ACT 2601.
