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...
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...
- Comment - Diageo Spins the Guinness Wheel... Again
- Diageo's Labels Give Industry Something to Digest
- Comment - 'Craft' and the Danger of 'Romance Copy'
- Is A-B InBev/SABMiller 'Mega-Merger' Off?
- Pernod takes positives from China Cognac bounce
- Craft is an 'abused' term - Pernod Ricard exec
- Diageo lines up UK innovations push
- SPI Group 'disappointed' over Stolichnaya ruling
- Edrington names European Travel Retail head
- Kraft Foods agrees Heinz merger
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Champagne: Less Than Bubbly
- Beer Market Insights Africa 2014
- ALDI 2015: Radically transforming Anglo Saxon grocery markets