(Alliance News) - DS Smith PLC said Thursday the US Department of Justice has entered a consent decree to clear the completion of the packaging group's sale of its Plastics division to Liqui-Box Inc.
The consent decree is now subject to a ratification by a US federal court, which is the final part of the process and should lead to the transaction being completed, it said.
The GBP450 million takeover deal was first announced in March, and in May the UK Competition & Markets Authority said it would probe the proposed acquisition.
In mid-July, the UK regulator had said the initial phase of its investigation found that the acquisition would create "insufficient competition", given that Liqui-Box and DS Smith are two of only four companies offering specialist Bag-in-Box packaging to food and drink suppliers in the UK.
However, in September the CMA cleared the acquisition, after Liqui-Box offered undertakings to the regulator, including the divestment of its Bag-in-Box business.
DS Smith said Thursday it expects to receive net proceeds of GBP400 million after taxes, transaction adjustments and exposes from the deal.
Shares in DS Smith - which is based in London - were up 2.6% at 361.20 pence on Thursday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Smith (DS) (SMDS)