Mondi and Walki terminate agreement on EC competition concerns

Paper and packaging company Mondi has terminated its agreement to buy two of Walki Group’s extrusion coatings plants in Finland and Poland due to European Commission competition concerns.

Mondi said the two companies, which announced the agreement in May, have been in discussions with the EC about ways to alleviate concerns related to the impact on the competitive environment.

“However, no workable solution suitable for all parties has been found and therefore Walki and Mondi have decided to withdraw the application to the Commission and terminate the acquisition agreement.”

Mondi said extrusion coatings remain a core part of its business and product portfolio and it will continue to operate its extrusion coatings division as before “to the benefit of its customers and other stakeholders”.

In September, the European Commission said it was concerned the acquisition could lead to less choice and higher prices for consumers of certain packaging materials used, for example, to transport and protect fresh food or paper.

At 1217 GMT, Mondi shares were up 3.2% to 1,316p.