A.G. Barr and Britvic merger falls through
A.G. Barr, the makers of Irn Bru, have walked away from the proposed merger with Britvic just days after the Competition Commission cleared the way for the deal to go through.
The soft drinks company released a statement last night that revealed that the board of Britvic had rejected a revised proposal which led A.G. Barr to withdraw.
The proposal would have seen the formation of a company made of a ratio of 65 per cent Britvic and 35 per cent A.G. Barr, described by the trading statement released by Brtivic as “only a small improvement on the previous terms”.
Ronnie Hanna, chairman of A.G. Barr, said that the company was “disappointed” that the proposal had been rejected but that it had reason to confident that it could continue to operate independently.
“A.G. Barr continues to outperform the UK soft drinks market and will follow its successful long term strategy supported by a strong balance sheet, unique brands and a well invested asset base, he added.
Gerald Corbett, chairman of Britvic, highlighted the company’s continued cost reduction plans of £30m, which many thought would threaten the deal, saying that this was the “absolute priority” going forward.
“We wish Barr and its management team well. They are good people with a fine business,” he concluded.