EC nods PaperlinX acquisition

The European Commission has approved PaperlinXs acquisition of the paper merchanting division of Buhrmann after examining the companies combined market shares.

Slovakia is the only country where the deal still has to be approved.

The Commission said that despite increased market share in the UK and Ireland, the deal would not lead to the creation or strengthening of a dominant position.

In both countries customers will retain sufficient choice between larger and smaller competing paper merchants, it said, adding that there was also potential competition from merchants outside the UK and Ireland.

One Scottish printer was concerned at the dominance in his region through the coverage by Robert Horne, Howard Smith and Donald Murray Paper.

But a merchant competitor said this could provide opportunities to gain new business, as printers opted for a wider variety of choice in their selection and service.

In June, Australian merchanting and paper production group PaperlinX offered Buhrmann 522m for its paper merchanting division, which includes Howard Smith Paper, Robert Horne Group and M6 Paper in the UK (PrintWeek, 26 June).

Story by Andy Scott