Fri, 12 Jul 2013 | MERGER
AG Barr has called off its planned merger with rival soft drinks company Britvic.
The two businesses struck a deal last year and were due to combine forces later this year. An inquiry by the Competition Commission held things up but the commission eventually confirmed that the merger could go ahead with no damage to the consumer market.
But by the time the inquiry gave confirmation of its clearance, the merger deal had lapsed and Britvic decided not to renew. An augmented proposal was put forward by Barr, but this was also rejected and it looks like both companies will now abandon any plans for the time being, with Barr insisting that its market position is strong enough without the tie-up.
The renewed share offer valued the merged company as 35 per cent AG Barr and 65 per cent Britvic, according to a statement from the latter's board.
Ronnie Hanna, chairman of AG Barr, commented: “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.”
Britvic's chairman, Gerald Corbett, added that his company is now set to focus on cost reduction and international expansion, but wished “Barr and its management team well”.
___________________________________________________________________________
Related articles:
The ten things that can turn a merger into a disaster
Provisional clearance given on Britvic and AG Barr merger
Britvic and AG Barr argue merger would not harm consumers
This is a unique opportunity to acquire valuable intellectual property assets from a well-established wholesaler with many years of experience in the discount food and non-food sector in the Midlands.
This is an opportunity to acquire a long-established specialist bakery business, supplying major UK supermarkets and boasting a fully equipped production facility with a skilled workforce.
Discover the rare chance to acquire a specialist UK supplier of marine engines and generators, noted for their leadership in the used marine engine market and hard-to-find parts.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.