The European Commission has given the go ahead for the proposed acquisition of Rexam’s Personal and Home Care Packaging Business by US private investment fund Sun Capital Partners.
The acquisition was cleared by the Commission under the EU Merger Regulation following investigation to ensure that it complies with EU competition rules.
The transaction will bring together the cosmetics and other personal care packaging businesses of Rexam and its competitor Albéa, which is part of Sun Capital’s existing portfolio.
In its examination, the Commission looked at the combined effects of the acquisition in the markets for mascara wands and lip gloss applicators, lipstick applicators, fragrance caps and cosmetic closures. It found that “a number of competitors remain active for each type of cosmetics packaging concerned”.
It also investigated the vertical link between Rexam Personal Care’s activities in airless and lotion pumps and Albéa’s plastic and laminated tube business and concluded that competing tube manufacturers would continue to have alternative sources for pumps. In addition, it said that it was unlikely that the merged entity would stop supplying competing tube manufacturers with Rexam PC pumps.
Therefore, it concluded, the transaction “would not significantly impede effective competition in the European Economic Area (EEA) or a substantial part of it”.