TORONTO and TAMPA, FL, U.S. – Cott Corporation (NYSE:COT; TSX:BCB) yesterday announced a progress update on the United Kingdom (“UK”) Competition Markets Authority (“CMA”) process in regards to its previously announced sale of its traditional beverage manufacturing business (“Cott Beverages”) to Refresco (Euronext: RFRG) for USD1.25 billion.
Refresco has been informed by the CMA that the acquisition of Cott Beverages by Refresco raises potential competition concerns in the UK for one specific category, juice drinks in PET using a special aseptic production process that allows them to be sold preservative-free without refrigeration.
In the UK, the combined company produces these products in only two factories, Bridgwater (Refresco) and Nelson (Cott). Refresco, in consultation with Cott, is currently examining the details of the decision and is willing to offer suitable remedies and will fully cooperate with the CMA to address the concerns raised.
Commenting on today’s announcement, Jerry Fowden, Chief Executive Officer of Cott, said “Other than the one product category produced by both Cott and Refresco, the CMA did not find any other competition concerns.
With clearance already received from the U.S. and Canadian regulatory authorities, as well as overwhelming support from Refresco’s shareholders, Refresco, in consultation with Cott, is willing to propose remedies to the CMA to address their concerns and work towards the successful completion of the acquisition.”
