AGI’s private equity-owner Atlas Holdings announced that regulators have approved its agreement with Shorewood owner International Paper to combine the two consumer packaging businesses.

Under the terms of the deal, which was announced in August, Atlas now owns 100% of the combined AGI-Shorewood in the US and 60% of its overseas business. International Paper will own the remaining 40% interest in AGI-Shorewood outside the US.

Atlas Holdings chairman Andrew Bursky said: "The merger provides AGI with expanded diversification, entrance to new growing end markets, and significant positions in rapidly expanding regions like Asia and Latin America."

Mike Ukropina, chief executive of AGI-Shorewood, added: "We intend to be recognised as the best global specialty-packaging business in our markets."

To coincide with the merger announcement, Lucy Tzou, chief executive of AGI-Shorewood Global Gravure and Asia, announced that company is to invest $7m (£4.5m) in expanding its plant in Guangzhou, China.

AGI-Shorewood employs nearly 4,000 people worldwide and operates 24 manufacturing facilities in North America, Europe, Asia and Latin America. It also has five plastic injection-moulding operations in the US, UK, Germany and Poland.

Its core markets include consumer, media and entertainment and tobacco packaging, including beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary and specialty foods and specialty gravure.