New Delhi: Fair trade regulator CCI has approved the packaging firm Huhtamaki's proposed acquisition of Enpee group firm Positive Packaging Industries, saying the deal does not raise anti-competition concerns in the country.
Under the proposed deal, Huhtamaki PPL Limited (HPPL) would acquire 100 per cent shareholding of Positive Packaging. This would result in merger of Positive Packaging and Huhtamaki.
HPPL -- part of Finland-based Huhtamaki Oyj -- is a listed company incorporated in India and is involved in the business of consumer packaging such as flexible packaging, labelling technologies and shrink sleeves.
Besides, the products of Positive Packaging also include flexible packaging, labelling technologies and shrinks sleeves.
In an order released today, the Competition Commission of India (CCI) that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
Taking note of the submissions made by HPPL and Positive Packaging, the Commission ruled that "the combined market share of the parties is not significant enough to raise any competition concern".
"There are other competitors also who are engaged in all the segments of flexible packaging and the labelling technologies market," the regulator noted.
It also observed that the customers of the two companies "who are mostly big corporates would have significant countervailing buyer power".
"The vertical relationship between the parties...Is insignificant, to raise any competition concern," it added.
HPPL and Positive Packaging had executed the 'Share Purchase Agreement' on July 8, 2014 following which they had approached CCI for its approval later the same month.
