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Tuesday, 02 September 2014

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Drinks deal referred

A £1.4BN deal to merge Robinsons squash maker Britvic and Irn-Bru owner AG Barr has been referred to the Competition Commission.

The Office of Fair Trading said it could not rule out the possibility of higher prices after surveys suggested Britvic’s brands Pepsi and Tango were sufficiently close alternatives to Irn-Bru to raise competition concerns.

Amelia Fletcher, OFT chief economist, said: “The soft drinks industry is an important one for many consumers in Great Britain. People spend over £9bn each year on these drinks.

“This merger will see the UK market reduce from three to two main players.”

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