AG Barr abandons bid for Britvic

bottles of soft drinks AG Barr had hoped to create one of Europe's largest soft drinks companies by merging with Britvic

Related Stories

The maker of Irn Bru has announced it will not make a bid for rival soft drinks firm Britvic.

AG Barr struck a deal on a merger with Britvic last year, but it was delayed by a Competition Commission inquiry.

By the time clearance was finalised earlier this week, the deal had lapsed and Britvic had backed away from renewing it.

AG Barr made a renewed merger proposal on improved terms, but that was rejected and no new bid is planned.

Cumbernauld-based AG Barr insisted it remains in a strong position without the alliance.

AG Barr Chairman Ronnie Hanna said: "While we are disappointed that the opportunity to create significant value for both sets of shareholders has been rejected, the Board of AG Barr has every reason to be confident of its position as a stand-alone company.

"AG 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."

A statement from the board of Britvic said the renewed all share offer valued the merged company as 65% Britvic and 35% AG Barr.

It said this "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".

Britvic chairman Gerald Corbett said: "Under Simon Litherland's leadership, our performance has significantly improved and this, combined with the £30m cost reduction plan and accelerating international expansion, means that our future is bright.

"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."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Scotland business stories

RSS

Features

  • Peaky Blinders publicity shotBrum do

    Why is the Birmingham accent so difficult to mimic?


  • Oliver CromwellA brief history

    The 900-year-story behind the creation of a UK parliament


  • Image of Ankor Wat using lidarJungle Atlantis

    How lasers have revealed an ancient city beneath the forest


  • ShakespeareBard taste? Watch

    Are trailer videos on social media spoiling theatre?


  • Agents with the US Secret Service, such as this one, are responsible for guarding the presidentHard at work

    White House break-in adds to Secret Service woes


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.