S.Africa Mondi's buy of Oaktree asset approved in EU

BRUSSELS Thu Aug 30, 2012 5:45am EDT

BRUSSELS Aug 30 (Reuters) - South African paper maker Mondi Group secured European Union regulatory approval on Thursday for its $782 million purchase of German packaging company Nordenia that will boost its presence in consumer packaging.

Mondi has said the deal would result in 15 million euros in annual pre-tax cost synergies. The seller is private equity firm Oaktree Capital.

Nordenia makes more than 90 percent 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 percent of its sales from Western Europe.

The European Commission said the deal would not hurt competition.

"The Commission's investigation showed that the merging parties would have a relatively limited combined market position and that a sufficient number of alternative suppliers remain on the markets concerned," the EU watchdog said in a statement.

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