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The Competition Commission has recommended that the Competition Tribunal approve without conditions the R44.4-million acquisition of Astrapak-owned Cinqpet and certain related assets by polyethylene terephthalate (PET) product manufacturer Boxmore.
Cinqpet’s business was focused on producing PET-converted beverage bottles, primarily for the Gauteng market.
Packaging group Astrapak said in a statement in March that its decision to offload the subsidiary was driven by a PET market that remained “highly competitive”, with rapidly changing fundamentals.
“The trend of customers moving in-house to blow their own bottles and consolidating filling facilities in terms of centres of excellence continues to further impact the sustainability of businesses operating in this market segment.
“Accordingly, and in line with Astrapak’s strategy, the company decided to dispose of the business,” it said at the time.