The EU Competition Commission has issued a statement of objections to Rexam regarding its proposed takeover by Ball Corporation, according to Packaging News.
The EU launched a probe in July into whether the planned merger breached competition guidelines, and could lead to higher prices.
Packaging News reports that it is understood that the Commission is concerned that the 'remaining competitors would not provide sufficient competitive constraints on the merged entity'.
Ball Corporation could be forced to sell off some of its UK ventures in order to ensure the deal goes ahead.
Earlier this year, the European Commissioner for Competition Margrethe Vestager, said that it is "therefore very important that the Commission makes sure that Ball’s takeover of Rexam does not restrict effective competition and so risk price increases that could be passed on to consumers”.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
