The Competition Authority is investigating the proposed acquisition by Swiss group Tetra Laval Holdings of Carlisle Process Systems amid concerns a takeover could reduce competition in the food packaging market.
The decision follows an announcement by the UK's Office of Fair Trading that it was considering whether to investigate the planned takeover.
Carlisle Process Systems, which is involved in the development of food packaging, was put up for sale by its US parent, manufacturing group Carlisle Companies, at the end of last year.
In April, Carlisle said a decision had been reached to sell the division to Tetra Pak, a unit of privately held Tetra Laval Group, for an undisclosed sum.
Tetra Pak specialises in making packaging for food, including cartons for milk and fruit juices.
It is believed that both groups are involved in supplying packaging, in particular cheese packaging, to the same Irish food companies, including Glanbia and Kerry.
"After a preliminary investigation, the Competition Authority has been unable to conclude without further investigation that the transaction will not substantially lessen competition," the Irish authority said in a statement.
It now has until September 8th to decide whether such a takeover would substantially lessen competition.
"The investigation of the proposed acquisition will examine the effect on competition in the provision of equipment to the liquid food processing industry," the statement read.
