The proposed merger between soft drink companies Britvic and AG Barr has hit a roadblock after facing criticism from Britvic’s eighth-biggest shareholder Harris Associates regarding the terms of the deal.
Both the firms are in discussions over a possible £1.4bn all-share merger deal.
Britvic, a British producer of soft drinks, owns Robinsons, Tango, J20 and Fruit Shoot, and also sells PepsiCo under an exclusive license, while AG Barr product portfolio includes Irn-Bru, Tizer and Rubicon.
A merger will create an opportunity for both the beverage firms to enhance their industry position, achieve significant synergies and shareholder value.
Britvic shareholders are expected to own 63% and Scottish soft drinks maker AG Barr shareholders 37% of the enlarged group's share capital.
Harris Associates, which owns 3.4% in Britvic, international equities chief investment officer David Herro, commenting on the merger, said: "The share ratio was poorly negotiated in our view, and it has not been properly explained as to how the companies came up with that ratio."
