UK: OFT reveals full concerns over AG Barr, Britvic merger
AG Barr and Britvic are convinced they can satisfy competition concerns over the deal
The authority yesterday (5 March) published its full 39-page ruling on the proposed tie-up, which it referred to the Competition Commission last month. Barr and Britvic have said they believe they can satisfy the concerns of regulators.
The OFT said the evidence showed that Britvic's brands offer a “sufficiently strong competitive constraint” to both Barr's Irn Bru and Orangina brands and that the loss of this constraint could elimiante that competition.
It added: “The OFT believes that it may be the case that the transaction will lead to an increased negotiating strength for the parties vis-à-vis customers, and hence higher prices given the resulting combination of brands.”
However, the authority said the merger would not affect water or fruit drinks as the companies do not compete “strongly” in this area.
The Competition Commission is expected to rule on the merger by July.
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...
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...
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- TWE unveils Penfolds range after CEO's "bold move"