UK regulator finds deal between Diageo and United Spirits anti-competitive

Diageo Plc and United Spirits Ltd are both major suppliers of spirits worldwide.

In the UK,United Spirits subsidiary,Whyte amp; Mackay,is primarily active in the supply of whisky,besides being a player in other spirits,including vodka.

The regulator said the merger may lead to a substantial lessening of competition in the supply of blended whisky to retailers.

OFT came to the conclusion after analysing evidence including data on consumer switching between brands,economic modelling and internal documents.

Chris Walters,OFTs Chief Economist and Decision Maker in this case,said the two companies are leading suppliers of blended bottled whisky in the UK,especially to supermarkets and other large retailers. Our investigation considered a wide range of evidence and we concluded that the likely loss of competition could give rise to higher prices for retailers,and ultimately consumers, he said.

Diageo has offered to sell most of its Whyte amp; Mackay business to address competition concerns.