Gerresheimer AG from Germany has sought to acquire Bormioli Pharma S.p.A. from Italy, both producing glass and plastic products primarily for the pharmaceutical industry, with implications for cosmetics, food, and beverage sectors.

The Austrian Federal Competition Authority (BWB) raised concerns about increased market concentration in primary packaging made of soda-lime glass for the pharmaceutical industry, highlighting potential negative impacts on prices, choices, and quality due to existing market entry barriers.

Market surveys conducted by the BWB revealed high combined market shares post-merger, particularly in the soda-lime glass packaging market for pharmaceuticals, which is characterized by high barriers to entry and significant concentration.

To address competition concerns, the parties committed to measures aimed at establishing a competitor in the soda-lime glass primary packaging market for the pharmaceutical industry, including customer transfers, subcontracting, production support, customer incentives, and oversight by an independent trustee, to facilitate successful market entry.