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”.
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