Amcor is a step closer to taking over US rival Bemis after the move was approved by the European Commission overnight.
The Australian packaging company promised to sell three Bemis plants in the UK and Ireland in order to address authorities’ concerns about competition.
Amcor said on Tuesday the $US5.25 billion ($A7.43 billion) Bemis all-stock deal still needs regulatory approval in the United States, where the process has been delayed by the partial government shutdown in January, and in Brazil.
Amcor’s first-half profit fell 18.8 per cent to $US267.6 million, the company announced on Monday, but its local investors will benefit from the lower Australian dollar, with shareholders due to receive 29.78 Australian cents in dividends – an increase of 13.8 per cent on the prior corresponding period.
First-half sales revenue ticked up 1.1 per cent to $4.55 billion but net profit fell 18.8 per cent to $US267.6 million ($A376.91 million), largely due to higher costs in the US, and refinancing expenses.