UK: AG Barr, Britvic bullish over merger prospects despite competition probe
The proposed merger could yet still happen
The GBP1.5bn (US$2.4bn) merger, first announced in November, hit a stumbling block yesterday (13 February) when the UK's Office of Fair Trading said it had referred the deal to the Competition Commission. The OFT said that it has competition concerns over some brands, which could mean higher prices for consumers.
But, in a joint statement today (14 February), the companies argued that the deal "will not result in a substantial lessening of competition" and they will be able to prove that to the Competition Commission.
The groups said they want to work with the commission with "a view to seeking clearance of the proposed merger".
"A.G. Barr and Britvic consider there to be compelling rationale for clearance," the companies said.
The Competition Commission's investigation is expected to take around six months.
Barr and Britvic's board will have to reconsider the deal if it receives clearance.
However, the statement added: "There can be no certainty or assurance that, following such clearance, any such merger would be forthcoming or that any offer will be made by either A.G. Barr or Britvic."
To read an analyst's take on the situation, click here
Although AG Barr was on its way to the church earlier this month, Britvic was still having second thoughts. The end of the affair leads Richard Corbett to ponder what went wrong for the two and what h...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
The company is focused on following three main strategies in 2013 in order to maintain its presence as one of the leading soft drinks manufacturers in the UK. These are innovation, increased distribut...
Following the acquisition of Irish company C&C (Ireland) Ltd in 2007 Britvic Ireland Ltd has held a firm position in soft drinks, offering leading brands such as Club and Ballygowan in Ireland. Despit...
Juices in the United Kingdom industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains...
- Comment - The Appeal and Perils of Craft
- Review of the Year 2014 - Part IV: Spirits
- Time is Right for Refresco Gerber Exit
- Sustainability in Wine - Part I
- just the Ten - Top News Stories of 2014
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Diageo ups focus on China with Mortlach roll-out
- Diageo rolls out Beckham's Haig Club to US
- Brown-Forman eyeing Scotch, Irish whisk(e)y entry?
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- Global market review of non-Scotch whiskies – forecasts to 2018