British drinks manufacturers to merge

The companies issued a statement confirming that, following an approach by AG Barr to Britvic, they are in preliminary discussions. Britvic's brands include Robinsons, Tango and Fruit Shoot while AG Barr's leading product is the iconic Scottish tipple Irn-Bru. The statement to shareholders said the merger would create one of the leading soft drinks companies in Europe, with a strong portfolio of market leading brands. "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," it continued. Discussions are said to be at an early stage although agreement has already been reached on certain key aspects of the merger. Britvic shareholders would own 63% and AG Barr shareholders 37% of the enlarged group. Roger White, CEO of AG Barr, would become CEO of the combined group and John Gibney, CFO of Britvic, would become CFO. Gerald Corbett, chairman of Britvic, would become chairman of the board of the combined group, and Ronnie Hanna, chairman of AG Barr, would become deputy chairman.