Rival aims to halt Nucleus/ Brulines deal

Dispense monitoring company Cotec Technology has lodged a formal objection with the Office of Fair Trading (OFT) to the proposed £3.8m acquisition of Nucleus Data by Brulines.

Cotec said it expected to make its own bid for Nucleus Data if the OFT blocks the merger, which it said would create a "monopoly" that would be "bad news for the pub industry".

The OFT is expected to make a ruling on the acquisition in the coming months. The merger would mean that Brulines equipment would be installed in 21,000 pubs.

A spokesman for Cotec said: "In our opinion the proposed merger is not good news for the pub industry.

"That is usually true of any monopoly situation, and we are hoping that the OFT finds the same. The merger is anti-competitive, which is ultimately bad for the clients.

"We are not sure how much consultation has taken place, however it's likely that there will be a good number of tenants with Nucleus systems installed, who will have greeted the acquisition news with dismay. Brulines' dispense monitoring has often proved to be controversial."

The proposed merger would see Nucleus Data's two current directors, Jeff Anspach and Clive Consterdine, appointed as Brulines directors.

When the proposed merger was announced, Brulines chief executive James Dickson said: "Not only will the merged business be able to pool resources, thereby accelerating technology development, but it will also deliver significant benefits across the whole on-trade supply chain."

Neither Brulines nor Nucleus Data were available for comment.