Britvic rejects proposed AG Barr merger to create soft drinks giant

AG Barr have announced that following the approval of a merger by the Competition Comission, Britvic have turned down a tie-up offer (release).

The deal would have seen the companies combine to be of Europe's largest soft drinks firms, with combined revenues of around £1.5bn.

This proposal was for an offer on more favourable terms for Britvic shareholders than the offer recommended by the respective Boards and subsequently approved by the A.G. Barr and Britvic shareholders in January 2013.

The Board of Britvic has rejected this proposal. As a result A.G. Barr confirms that it does not intend to make an offer for Britvic.

A.G. Barr chairman, Ronnie Hanna, commented:

While we are disappointed that the opportunity to create significant value for both sets of shareholders has been rejected, the Board of A.G. Barr has every reason to be confident of its position as a stand-alone company. A.G. 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.