Distell MD, Jan Scannell today slated some of the recommendations by the Competition Commission on the merger that created the company saying it would undermine the company#;s international potential.

"We welcome the the fact that the Commission has recommended the approval of the merger, however the conditions they now propose are totally unrealistic.

The South African Competition Commission has recommended conditional approval for the Distell merger, following its investigation into the anti-competitive effects of the merger.

But, the saga is far from over, with the findings to again be placed before the Competition Tribunal, which will make a finding on possible divesture of several brandy and sparkling wine brands traded by the merged entity.

"The main reason for the merger was to improve Distell#;s capabilities to compete successfully in a highly competitive global arena.

"Major breakthroughs have already been achieved and we are well on our way to becoming a leading South African force in global beverage markets. However, the Commissions current proposal will undermine our potential to grow successfully in these keenly contested markets. For the full story see the feature, Conditional approval for Distell merger – but saga continues, by Arnold Kirkby to be published later today.