CMA warns Refresco and Cott drinks deal could mean higher prices for Brits

The UK’s competition watchdog on Wednesday said it is concerned drinks bottler Refresco’s $1.25 billion (£935 million) swoop for the firm behind Mr Freeze ice pops, could lead to higher prices for shoppers.

The Competition and Markets Authority launched a probe into Netherlands-based Refresco’s proposed purchase of Canada’s Cott’s bottling arm in October.

Both companies have sizeable businesses in the UK: Cott is behind products such as Old Jamaica ginger beer, and Refresco provides packaging and manufacturing services, working with brands such as Innocent, Sunny D and Um Bongo. Refresco supplies retailers including Iceland and Tesco.

The CMA today said it has found both firms use a special aseptic process that only one other competitor in the UK provides.

Rachel Merelie, CMA acting executive director, said a merger “may result in higher prices or quality standards slipping for stores and brands”.

The watchdog will refer the acquisition for further investigation unless Refresco offers measures to address the worries.

Refresco said it “is willing to propose remedies”.