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Home / News / Provisional clearance on Britvic and AG Barr merger

Provisional clearance on Britvic and AG Barr merger

Tue, 11 Jun 2013 | MERGER



Provisional clearance has been given for the go-ahead on the merger of Britvic and AG Barr.

The Competition Commission gave the clearance on the planned merger, which was first announced in September 2012, after concluding that the proposed takeover by Britvic would not result in damage to levels of competition within the market or cause wholesale prices to rise by any significant level.

A full report is due to be published by the commission by 30 July and is expected to confirm that the two companies' brands were not sufficiently close competitors to cause a problem in the industry.

Alistair Smith, deputy chairman of the commission and the man in charge of the merger inquiry, elaborated: “We have provisionally concluded that customers will not lose out.

“Carrying out a full investigation gave us the chance to look in detail at consumer preferences. They told us that consumers tend to see Barr and Britvic brands as distinctive products rather than close substitutes for each other.”

AG Barr is known for making Orangina and the Scottish favourite, Irn Bru. Britvic, meanwhile, is known for the Tango and Robinsons brands.

If the merger goes through the new company will be dubbed Barr Britvic Soft Drinks and will be expected to achieve annual sales of more than £1.5 billion, making it one of the largest drinks companies in Europe. The business will most likely have its head office in Cumbernauld, North Lanarkshire, where AG Barr is already in situ.

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Related articles:
Britvic and AG Barr argue merger would not harm consumers
Achieving post-merger harmony


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