US regulators stall €1.3bn takeover bid from Ardagh
The claim, by the Federal Trade Commission, relates to Ardagh’s proposed $1.7bn (€1.3bn) purchase of Verallia North America from French multinational Saint-Gobain, which was initially agreed upon and announced in January.
Verallia is the second largest glass container manufacturer in the US market and the deal represented Ardagh’s biggest single purchase since buying international metal packaging giant, Impress for €1.7bn three years ago.
The commission yesterday informed Ardagh of its intention to issue an administrative complaint, which alleges the acquisition is anti-competitive insofar as it relates to the sale of glass containers for beer and spirits.
The commission is also planning to file a petition in the federal district court seeking a preliminary injunction to prohibit the completion of the transaction, pending a decision on its complaint.
In a brief statement, Ardagh expressed its disappointment at the claim, but added that it will fully appeal the decision.
“Ardagh intends to vigorously defend the transaction in litigation, while at the same time working with the commission to seek to resolve its concerns,” the company stated.
While always dependent on US regulatory approval, Ardagh had initially expected to complete the deal later this year.
It is not known how long the current process might take.
Upon tentatively agreeing a deal with Saint-Gobain earlier this year, Ardagh’s chairman, Paul Coulson, said a successful conclusion would mark another important milestone in the evolution of the group and would increase the size of its global glass business by nearly 60%.
If ultimately successful in getting the Verallia deal over the line, Ardagh would boost its share of the American glass packaging market past 20% and would mean that around 40% of its group sales and earnings would be generated in the US.
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