Brussels, 06/07/2001 (Agence Europe) - On Friday, the European Commission decided to carry out a detailed inquiry into the acquisition by Tetra Laval SA of the French company Sidel SA. Preliminary examination revealed that the merger operation could create or strengthen a dominant position on the market for liquid food packaging equipment.
In March, the Tetra Laval group, established in Switzerland, made a takeover bid for Sidel SA through its French subsidiary Tetra Laval SA. In May, the project was notified to the Commission. Tetra Laval is a group of companies which offer both processing and packaging equipment for beverages and liquid food and are known as the Tetra Pack packaging businesses. Tetra Laval's business includes traditional carton packaging, where it is the world-wide market leaders, and more limited activities in plastic packaging. The purpose of the transaction is to enhance Tetra Laval's position in the market for PET (polyethylene terephtalate) plastic bottle packaging (generally used for mineral water and carbonated soft drinks). Sidel mainly designs and manufactures packaging equipment and systems, in particular, blow moulding machinery, where it is the world-wide market leader, barrier technology and filling machines for PET plastic bottles. Barrier technology enables PET bottles to be used for the packaging of light-sensitive and oxygen-sensitive products like juices, milk and beer. The Commission will examine the likely effect of the merger in the sector and, in particular, the extent to which plastic packaging may compete with carton.