The UK’s Competition and Markets Authority (CMA) announced Thursday that it has closed its investigation into Sonoco Products Co.'s $3.9 billion acquisition of Eviosys, a Switzerland-based food can manufacturer. The CMA’s decision not to escalate the probe to a second phase allows the transaction to proceed without further regulatory challenges.

CMA Clears the Acquisition

The CMA spent seven weeks reviewing the acquisition to assess its potential impact on competition in the UK packaging market. Ultimately, it found no basis to advance the investigation.

"The CMA has decided, on the information currently available to it, not to refer the above merger to a phase two investigation," the regulator said. While the CMA has not yet disclosed full details of its findings, the clearance marks a significant milestone for Sonoco’s strategic expansion.

Expanding Sonoco’s Global Reach

Sonoco, known for its sustainable packaging solutions and iconic Pringles cans, is one of the largest global players in consumer and industrial packaging, with net sales of approximately $6.8 billion in 2023. The acquisition of Eviosys strengthens its foothold in the European, Middle Eastern, and African markets.

Eviosys, formerly Crown Aerosols, is a major supplier of metal packaging, including cans for cat food, tuna, and promotional products. With 6,300 employees across 44 manufacturing sites in 17 countries, the company generated €2.41 billion ($2.5 billion) in revenue in 2023. Eviosys also operates a research and development center in Oxfordshire, U.K., along with seven manufacturing plants in the country.

The acquisition integrates Eviosys into Sonoco’s consumer packaging division. The rebranding of Eviosys to the Sonoco name is set to unfold over the coming months.

Background of the Deal

Sonoco finalized its agreement to purchase Eviosys in June from private equity firm KPS Capital Partners and Crown Holdings, Inc., which retained a 20% stake in the company. The acquisition bolsters Sonoco’s offerings in food-grade and promotional metal packaging, aligning with its sustainable growth strategy.

Crown Holdings, which initially sold the business to KPS Capital in 2021, announced it will receive approximately $300 million from the sale.

Legal Representation

The deal featured a prominent roster of legal advisors. Freshfields Bruckhaus Deringer LLP represented Sonoco, led by M&A partners Damien Zoubek, Jonathan Zhou, and Joshua Ayal. KPS Capital and Eviosys were advised by Paul Weiss Rifkind Wharton & Garrison LLP, with M&A partners Angelo Bonvino and Michael Vogel leading the team.

Conclusion

The CMA’s clearance removes a key regulatory hurdle for Sonoco’s $3.9 billion acquisition of Eviosys, paving the way for Sonoco to expand its global footprint. The transaction underscores the growing demand for sustainable and innovative packaging solutions in consumer markets worldwide.