The deal is expected to be concluded in six weeks subject to regulatory approval.

Sicpa's 2,800 staff would remain in plants in Finland, Belgium, Switzerland and France and become part of Siegwerk, with 1,300 staff and headquarters near Cologne.

Siegwerk corporate spokesman Peter Heimirzheim said it was too early to say if there would be job losses or what the new set up would be called. Joint turnover will be 520m.

"We need to integrate the businesses and envisage no expansion for maybe two years," he said. "This deal is not a big risk. We have a very good financial position and think packaging inks is an emerging business."

Sicpa's security inks division employing 700 staff is not affected by the deal.

The move is a further consolidation within the ink market, following the merger of BASF Printing Systems with ANI Printing Inks to form Xsys Print Solutions. Heimirzheim predicted further consolidation.

"Most firms will need to specialise rather than offer a full range of products," he said. "Maybe Sun Chemical, the biggest firm, will be able to remain as a full-range provider."  
 
Story by Jez Abbott