Mondis parent Anglo American agreed to a 66m (EUR94m) deal to buy Bauernfeinds corrugated paper and packaging business.

Anglo American will own 100% of the enlarged Mondi Packaging. The deal is subject to regulatory approval.

Mondi Group chairman and chief executive, David Hathorn said discussions had started just over a year ago.

In a nutshell this will broaden our European coverage, and provides us with a quality operation aimed at the higher end of the market, he said.

Although there was very little overlap between the two businesses, he said there could be some cuts.

Bauernfeind has corrugated paper and converting operations in Germany, Belgium, Austria, Poland, Italy, Switzerland and China.

Its five paper mills produce 580,000 tonnes per annum of corrugated case materials. It has annual sales of 351m.

Mondi Packaging produces corrugated paper, board and boxes, with a production capacity of 735,000 tonnes per annum. It has three plants in the UK in Lancashire and Cheshire and operations in France, Poland and Ireland.

Story by Andy Scott