LONDON (From news reports) -- Packaging firm Liqui-Box Corp on Monday agreed to sell its bag-in-box business to Peak Packaging to comply with requirements from Britain's competition watchdog over the U.S.-based company's takeover of DS Smith's plastics business.

Britain's Competition and Markets Authority (CMA) was investigating whether Liqui-Box's $585 million takeover of the DS Smith business would reduce competition.

The watchdog said in July that food and drink suppliers might have to pay higher prices and have less choice for packaging if the merger went ahead.