Australian-based paper maker and packager Amcor announced that it has received approval from the US Justice Department to acquire the Medical Flexibles business of Rio Tinto-owned Alcan. The Alcan business consists of four plants in North America, and approval is conditional on divesting one of the plants which is located in Marshall, North Carolina.

In an announcement to the ASX, Amcor said it will initially acquire all four plants for consideration of US$66 million. The divestment process for the Marshall operation will begin immediately and, until completed, Amcor is required to hold and operate Marshall separately from its other businesses.

According to the release, the Alcan Packaging acquisition announced in August 2009 consisted of approximately 80 plants and sales of approximately A$4.6 billion. The combined Medical Flexibles business has annual sales of approximately US$115 million, of which the Marshall operation accounts for approximately US$30 million. The three operations to be retained by Amcor produce a range of medical flexible packaging products.

Amcor’s Managing Director and CEO Ken MacKenzie said, “It is pleasing that the regulatory processes relating to the Alcan acquisition are now complete and that we have been successful in acquiring 79 of 80 plants, and $4.6 billion in sales.

“The integration of the two businesses is proceeding extremely well. A new culture has been established that combines the best elements of both organizations and there is enthusiasm to share best practices,” MacKenzie added.

A statement from the US Justice Department said that the original proposal “would lead to higher prices, lower quality, less favorable supply-chain options, reduced technical support and less innovation.”