Tredegar Corporation (TG) announced on Wednesday that Brazil's Administrative Council for Economic Defense has approved a merger control agreement. This approval allows Tredegar to proceed with the sale of its flexible packaging division, Terphane, based in Brazil, to the Oben Group.
The conditions outlined in the merger control agreement focus primarily on post-closing commitments by Oben to address certain competition concerns. It is anticipated that these conditions will be fulfilled by the close of the transaction, which is scheduled for November 1, 2024.
Tredegar reached an agreement on September 1, 2023, to sell Terphane to Oben for a net consideration of $116 million, ensuring a cash-free and debt-free transaction base.
Tredegar Corporation is known for its industrial manufacturing, comprising three main sectors: custom aluminum extrusions for North American markets including building and construction, automotive, and specialty end-use; surface protection films for advanced technological applications in the global electronics sector; and specialized polyester films tailored for the Latin American flexible packaging market.
