Nippon Paper Industries has received approval from the Foreign Investment Review Board to go ahead with the acquisition of Orora’s Australasian Fibre Business.
In an announcement to the Australian Securities Exchange, Orora said the approval indicates the Commonwealth has no objection to the Japanese firm’s acquisition of the business.
“This latest regulatory approval allows the parties to work towards transaction completion, which is now expected to occur over the coming weeks,” the statement reads.
The Australian Competition and Consumer Commission gave the deal a green light last month. The commission noted that Nippon Paper’s subsidiary Australian Paper would become vertically integrated with one of its major customers (Orora’s fibre business). However, the ACCC is not opposing the acquisition because buyers of packaging paper products would be able to purchase from local and international manufacturers.
In October, Orora entered into a binding agreement with Nippon Paper Industries to sell its Australasian Fibre Business for $1.72bn.