UK: AG Barr, Britvic merger hits the rocks over competition concerns
The merger faces uncertainty over competition concerns
In an announcement today (13 February) the OFT said that it was making the referral due to "concerns that it could reduce competition between certain brands" of the two companies. Amelia Fletcher, the OFT's chief economist said: "Our investigation has identified competition concerns relating to this deal with respect to Barr's Irn Bru and Orangina brands which could lead to higher prices for consumers."
As a result of the referral the deal, agreed last November, has technically collapsed. However, just-drinks understands that both groups are waiting for full details of the OFT's decision before deciding whether to revive the deal. It is understood the companies would have to hold another shareholder vote on the issue.
An AG Barr spokesperson told just-drinks: "The belief still is the merger will not result in competition problems."
In a joint statement, the companies said they will "continue to work together".
Meanwhile, Britvic announced today that is has appointed Simon Litherland as its new CEO with immediate effect. Outgoing CEO Paul Moody is retiring from the group but will stay on for six months to "ensure a smooth handover", the company said.
To read an exclusive analyst's take on the decision, click here.
To see just-drinks' full coverage of AG Barr and Britvic's proposed merger, 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...
- Analysis - Will Diageo call time on wine?
- Martell's CEO & chairman, Philippe Guettat
- Why Didn't Diageo Act Sooner on Mallya?
- just The Facts - The Global Wine Industry
- Currency woes hurt Latin American FTZs - Diageo
- A-B InBev snaps up Bogotá Beer Co in Colombia
- Diageo considers wine operations sale
- Beam Suntory defeats 'handmade' lawsuit
- Diageo Canada adds new RTD canning line
- A-B InBev approves new chairman
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Diageo Plc in Wine (World)
- Global rum insights - market forecasts, product innovation and consumer trends research
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review