Note that Britvic’s chairman Gerald Corbett said earlier this week that the benefits of a merger for the company were “materially less” than they were when the merger was agreed before the deal was investigated and cleared by the Competition Commission.
The Board of Britvic and its advisors have had a number of discussions with AG Barr and its representatives concerning a possible merger, following the Competition Commission's clearance received on Tuesday, 9 July 2013. Britvic received a new proposal from AG Barr for a merger with a ratio of 65% Britvic 35% A G Barr, which 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. The Board of Britvic therefore rejected the proposal and has agreed with AG Barr to terminate discussions.
Corbett said today:
Under Simon Litherland's leadership, our performance has significantly improved and this, combined with the £30 million 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.