UK: Refresco to serve up remedies for CMA’s Cott approval

Drinks bottler Refresco is willing to offer remedies to concerns voiced by Britain’s Competition and Markets Authority (CMA) over the Dutch company’s US$1.25 billion acquisition of Cott’s bottling activities.

The CMA, which has undertaken an initial investigation of the deal, said on Wednesday, January 3, that it had concluded the purchase could result in higher prices or lead to lower quality standards for some juice drinks that both companies supply in the UK.

Refresco said in a separate statement that it was prepared to offer “suitable remedies” to the CMA and would fully cooperate with the watchdog. The regulator had warned that it would refer the deal for an in-depth investigation unless undertakings were made by the Dutch bottling business to assuage its concerns.

“With the clearance we received earlier in the process from the U.S. and Canadian regulatory authorities and the overwhelming support from our shareholders, 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,” said Refresco Chief Executive Hans Roelofs.

Refresco agreed to buy Canada-based Cott’s production business in July in a move that bolsters its operations in the United States, the world’s biggest soft drinks market.

Full Content: Bloomberg BNA

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