CMA accepts Liqui-Box undertakings for acquisition of DS Smith unit

The Competition and Markets Authority will not refer the acquisition of DS Smith's rigid and flexible plastic packaging business by US-based Liqui-Box for a phase 2 investigation.

The watchdog had said in July that food and drink suppliers could get a worse deal on their packaging if the two specialist firmed merged.

It said at the time that a merger between the two businesses - which are the two main companies in the UK offering a specialist type of packaging called Bag-in Box - could create insufficient competition in the supply of these products, leading to their customers potentially having less choice and paying higher prices.

It also expressed concerns that the reduction in competition could lead to lower quality products and/or a poorer service.

However, the CMA said on Monday that it had accepted Liqui-Box’s undertakings, which include the divestment of its Bag-in-Box business.

At 1320 BST, DS Smith shares were up 1.8% at 360.40p.