The UK’s Competition and Markets Authority (CMA) has initiated an investigation into the anticipated acquisition of the Eviosys group by packaging company Sonoco.
The potential deal, valued at approximately $3.9bn, was initially agreed upon in June this year, with Sonoco set to acquire the food can manufacturer from KPS Capital Partners.
The CMA’s inquiry will determine whether the merger could lead to a substantial lessening of competition in the UK market for goods or services.
This assessment is in line with the provisions of the Enterprise Act 2002 concerning relevant merger situations.
Interested parties have been invited to submit comments between 24 October and 7 November 2024, which will aid the CMA in its investigation.
The regulator is scheduled to announce its first-phase decision by 19 December this year.
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By GlobalData
Eviosys is a supplier of metal packaging and produces food cans, aerosol cans, metal closures, and promotional packaging.
With a workforce of roughly 6,300 employees, Eviosys operates 44 manufacturing facilities across 17 countries.
Sonoco projects that Eviosys’ revenues will reach approximately $2.5bn by the end of 2024.
Sonoco also expects more than $100m in synergies from the transaction.
At the time of the deal’s announcement, Sonoco president and CEO Howard Coker said: “Eviosys brings extensive global reach and an attractive, growing customer base that perfectly complements our existing metal packaging offering.
“Together with the talented team at Eviosys, we are focused on unlocking new opportunities in attractive end markets, providing our customers with a stronger value proposition and generating strong returns for our shareholders.”
Sonoco employs around 22,000 people working in more than 300 operations across the world. The company reported net sales of approximately $6.8bn in 2023.
