R6.5bn Mondi deal approved
SOUTH African paper maker Mondi Group secured European Union regulatory approval yesterday for its $782-million (R6.5-billion) purchase of German packaging company Nordenia that will boost its presence in consumer packaging.
Mondi has said the deal would result in ?15-million (about R159-million) in annual pre-tax cost synergies. The seller is private equity firm Oaktree Capital.
Nordenia makes more than 90% of its revenues from the packaging and components of consumer products such as pet food, diapers and chocolate bars. It has operations across Europe, North America and Asia, but draws nearly 60% of its sales from Western Europe.
The European Commission said the deal would not hurt competition.