News

Refresco seeks cooperation after UK watchdog raises concerns over Cott Beverages deal

Most popular

Pernod breaks boundaries with Chinese distillery

New Remy Cointreau CEO - just-drinks thinks

Interview - Pernod Ricard CFO Helene de Tissot

Pernod on its Chinese whisky project - Interview

just-drinks meets Asahi Europe's CEO - II

MORE

European soft drinks maker Refresco has said it is willing to make concessions to its proposed acquisition of Cott Corp's bottling assets after UK competition authorities raised concerns over the US$1.25bn deal.

Refresco agreed to buy Cott Beverages in July last year

Refresco agreed to buy Cott Beverages in July last year

The UK Competition and Markets Authority (CMA) said today it had no concerns over the merger of Refresco's and Cott Beverages' brands. However, it warned the deal could leave Refresco with a near monopoly on a specialised production process that in turn could raise prices for supermarkets and rival beverage brands.

According to the CMA, both Cott Beverage and Refresco supply juice drinks in the UK using a special aseptic production process that allows them to be sold preservative-free and without refrigeration. The authority said only one other UK competitor supplies third parties with juice drinks using this production process, meaning the merger could allow Refresco to dominate the third-party market. "The CMA is therefore concerned that, after the merger, the combined business might be able to increase prices or lower quality standards," the CMA said.

Refresco said today it was reviewing the CMA's decision, and that it will work with the body to address the concerns.

"We are willing to propose remedies to the CMA to address this specific issue and put us on the right track to also obtain clearance in the UK," Refresco CEO Hans Roelofs said. "We continue to cooperate with the CMA in order to progress the acquisition and work towards a successful completion."

Cott Corp agreed in June to offload its traditional beverage manufacturing business, known as Cott Beverages, to Refresco in a deal worth US$1.25bn. Refresco has already obtained clearance from US and Canadian competition authorities.

What is Refresco buying from Cott Corp for US$1.25bn? - Click here for a just-drinks focus


Related Content

Heineken to address UK competition fears over Punch Taverns deal

Heineken to address UK competition fears over Punch Taverns deal...

Refresco prepares for Cott Beverages purchase with H1 2017 sales jump - results

Refresco prepares for Cott Beverages purchase with H1 2017 sales jump - results...

Cott Corp Q4 hit by one-off, but FY rides wave of DS Services water purchase

Cott Corp Q4 hit by one-off, but FY rides wave of DS Services water purchase...

How Cott Corp Weathered Private-Label's Storm - Comment

How Cott Corp Weathered Private-Label's Storm - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?