AG Barr and Britvic agree merger

AG Barr and Britvic have agreed the terms of an all-share merger, which will create one of the leading soft drinks companies in Europe.

The enlarged company, which will be called Barr Britvic Soft Drinks, will have annual sales of £1.5bn.

The merger ratio will be 0.816 new AG Barr shares for every Britvic share held, meaning Britvic shareholders will hold around 63 per cent of the new company, with AG Barr shareholders holding 37 per cent.

The companies said this morning they believe the enlarged company can achieve annual cost savings of around £40m.