After Bloomberg reported that Refresco Group could buy Cott, RBC Capital analyst Nik Modi says that acquiring Cott's traditional business would enable Refresco to get closer to its strategic goal " of being a global independent bottler for A-brands and private label customers." The analyst says that Refresco could buy all of Cott for $22 per share, in a deal that would be significantly dilutive to it. Or it could buy only Cott's traditional business, which would allow Cott to reduce its leverage by three times. Finally, Refresco could sell only its U.K. traditional business, which would lower its net debt to EBITDA leverage by 0.6 times. The analyst remains upbeat on Cott's fundamentals and keeps a $20 price target and an Outperform rating on the shares. .