Schweppes has clearance for Orangina purchase

The European Commission has granted clearance under the European Union's merger control law to the proposed acquisition by UK soft drinks company Cadbury Schweppes Plc of the soft drinks brands and related businesses of French drinks company Pernod Ricard SA. In a statement the Commission said that the proposed transaction does not give rise to any competition concerns in the market for soft drinks, given the existence of strong competing international brands of soft drinks in Europe, such as The Coca-Cola Company, PepsiCo International, Unilever, Groupe Danone and Nestlé, as well as of local brands. The transaction, valued at 700 M Euro, comprises the Orangina, Pampryl, Champomy and Yoo-Hoo brands and associated businesses, covering continental Europe, North America and Australia. This price will be increased by an indemnity payment of 18 M Euro to compensate for certain tax costs linked to the structure of the transaction. Pernod Ricard will also have the option to sell Cadbury Schweppes its soft drinks activities in the remaining markets for an additional sum of approximately 35 M Euro.