Britvic has pulled out of a possible merger with Irn-Bru manufacturer AG Barr.
In a statement, Britivic said: “The Board of Britvic and its advisors have had a number of discussions with AG Barr and its representatives concerning a possible merger, following the Competition Commission's clearance received on Tuesday, 9 July 2013. Britvic received a new proposal from AG Barr for a merger with a ratio of 65% Britvic 35% A G Barr, which represented only a small improvement on the previous terms as announced on 14 November 2012 and was at a considerable discount to the current market capitalisation ratios of the two companies. The Board of Britvic therefore rejected the proposal and has agreed with AG Barr to terminate discussions.”
"Under Simon Litherland's leadership, our performance has significantly improved and this, combined with the £30 million cost reduction plan and accelerating international expansion, means that our future is bright,” said Britvic's chairman Gerald Corbett. “The execution and delivery of this is now the absolute priority of the Britvic team. We wish Barr and its management team well. They are good people with a fine business."
