AG Barr, the Scottish soft drinks manufacturer, has approached Britvic for a possible merger. In a joint statement, the companies confirmed that they are in preliminary talks and it has already been agreed that if the deal were to go ahead 63 per cent of the new group would be owned by Britvic shareholders with AG Barr shareholders holding the remaining 37 per cent.
It is thought that the merger would be worth around £1.4 billion and could create one of the biggest soft drinks companies in Europe. Shares in both companies have shot up since the announcement.
Roger White, CEO of AG Barr, would become CEO of the combined group and John Gibney, CFO of Britvic, would hold the same role in the new company. Gerald Corbett, chairman of Britvic, would be chairman of the board of the combined group, with Ronnie Hanna, AG Barr's chairman taking on the position of deputy chairman.
“The combination would have compelling industrial logic and represents an opportunity for both companies to enhance their industry position, and achieve significant synergies and shareholder value,” the statement reads. Intent to make an offer by either company must be made by 3 October.
AG Barr is the producer of the iconic Irn Bru and also has popular UK brands such as Orangina, Rubicon and Tizer. Britvic's portfolio includes Robinsons, J2O, Fruit Shoot, Tango and drench in Britain with MiWadi, Club and Ballygowan in Ireland, and Teisseire, Fruite and Pressade in France. The group also has exclusive bottling agreements with PepsiCo in the UK and Ireland for Pepsi and 7Up. (5 Sept)
© 2012 - ESM: European Supermarket
