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Amcor Announces Asset Sale To Alleviate Antitrust Concerns Tied To Bemis Merger

Mary Meldrum

Packaging companies Amcor Limited and Bemis Company, Inc. (NYSE: BMS) announced efforts Monday to resolve the Department of Justice's antitrust concerns with the combination of the two companies. 

What Happened

Amcor has entered into a binding agreement to sell plants in Milwaukee, Wisconsin and Ashland, Massachusetts and part of its Madison, Wisconsin plant to Tekni-Plex, Inc. for $215 million cash, 

The asset sale is subject to approval by the Department of Justice and Tekni-Plex and the filing of a final DOJ judgment. 

Why It's Important 

The antitrust remedies required by the European Commission and DOH are immaterial to the total sales of the combined Bemis and Amcor, according to Monday's press release.

The merger is expected to deliver $180 million in cost synergies by the end of the third year following the closing of the deal, according to the companies. 

What's Next 

The transaction is expected to be completed May 15, Amcor and Bemis said. 

Amcor shares were trading down 0.34 percent to $43.76 at the time of publication Monday. 

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