Competition Commission clears path for Britvic merger

UK Commission approves possible merger between Britvic and AG Barr



9 July 2013

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The UK Competition Commission has formally approved the possible merger between Britvic and A.G. Barr. The decision follows a formal review process by the board. The commission’s final decision is that the possible merger is not expected to result in a substantial lessening of competition.

The decision puts Britvic into a new ‘offer period’ under the Takeover Code as the previous offer had lapsed when the possibility of a merger was referred to the Competition Commission. The decision is not an announcement of a firm intention to make any offer.

Britvic’s chairman Gerald Corbett commented: "The merger lapsed in February when the deal was referred to the Competition Commission. We would obviously consider any proposal tables in the interests of shareholders. However, Britvic is in a very different position to last summer when the merger was agreed. We have a new chief executive. The board is confident of driving £30 million of cost savings over the next three years and of the enhanced international expansion opportunities. Britvic’s prospects as a stand-alone company are bright."

The decision by the Competition Commission gives A.G. Barr 21 days to confirm whether it intends to make a firm offer for Britvic or not.



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