FTC Requests Public Comments on Ardagh Group S.A.’s Application for Approval to Sell Six Plants and Related Assets to Glass Container Acquisition LLC

The Federal Trade Commission is currently accepting public comments on an application by Ardagh Group S.A. to sell six manufacturing plants and related assets to Glass Container Acquisition LLC (GCA), an affiliate of KPS Capital Partners L.P. (KPS), as required under an FTC’s order settling charges that Ardagh’s proposed acquisition of Saint-Gobain Containers, Inc. would be anticompetitive.

According to the FTC’s administrative complaint, issued in July 2013, Ardagh’s proposed $1.7 billion acquisition of Saint-Gobain would likely substantially reduce competition in U.S. markets for glass containers for beer and spirits, resulting in higher prices for those customers.

This month, Ardagh settled the complaint, agreeing to sell six of the manufacturing plants and related assets it acquired through its 2012 acquisition of Anchor Glass Container Corporation, along with Anchor’s former corporate headquarters in Tampa, Fla. The six plants are located in: Elmira, N.Y.; Jacksonville, Fla.; Warner Robins, Ga.; Henryetta, Okla.; Lawrenceburg, Ind.; and Shakopee, Minn.

In its application, Ardagh has requested Commission approval to divest the assets and business to GCA. According to the application, the sale to GCA would be consistent with the terms and purposes of the FTC’s order, as the company has the ability to operate as an independent, viable, and effective competitor with capacity roughly equal to one of the parties in each of the relevant markets.

The Commission will decide whether to approve the proposed divestiture after expiration of a 30-day public comment period. Public comments may be submitted until May 28, 2014. Written comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments can also be submitted electronically. Copies of the application can be found on the FTC’s website and as a link to this press release. (Docket No. D-9356; the staff contact is Roberta Baruch, Bureau of Competition, 202-326-2261)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., N.W., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.