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...
Barr (AG) Plc is focused on joining forces with Britvic Soft Drinks Ltd to become a joint partner company in what is expected to be the largest European soft drinks company. The formulation of the mer...
- Is Diageo on the Brink of a Brain Drain?
- SABMiller edges Diageo as beer trumps spirits
- Comment - Heineken's move for Pivovarna Lasko
- Will Keurig Kold come to Coca-Cola Co's Rescue?
- Focus - SABMiller's FY Sales Performance by Region
- Rémy Cointreau eyes recovery after Q4 bounceback
- Carlsberg exec joins Diageo as Africa chief steps
- Diageo YTD sales come in flat
- Belvedere unveils executive team
- Diageo targets Millennials with DeLeon ads