Bain Capital Private Equity has decided not to proceed with the acquisition of Belgian packaging company Resilux (RESI.BR) due to an anti-trust ruling in Germany, the investment company said on Tuesday.
Bain Capital said Germany's anti-trust authority had informed it the combined acquisition of Resilux and UK peer Petainer Topco had not received a so-called phase I clearance and would need to have a phase II review.
The phase I review takes roughly a month. The regulator typically opens a phase II investigation of up to a further three months if it has serious concerns a deal may harm consumers and rivals.
This made the transaction difficult to pursue as a result of the timeline for delisting Resilux, Bain Capital said.
"The decision not to pursue the acquisition does not reflect any change in opinion on the strengths of either Resilux NV or Petainer, nor is it the result of adverse due diligence findings," Bain Capital said in a statement.
Resilux shares have risen 15 percent to 187.25 euros since it was announced in early February that Bain Capital was considering a 195 euros per share bid. That valued the company at about 386 million euros ($419 million).
Resilux was not immediately available for comment.
Shares in the company were suspended on Tuesday morning.
($1 = 0.9211 euros)
(Reporting by Alan Charlish; Editing by Mark Potter)