The board of drinks giant Britvic has rejected a merger proposal from AG Barr, bringing to an end discussions about a possible tie up between the two companies.
Following UK Competition Commission clearance on Tuesday, Britvic received a proposal from AG Barr for a merger with a ratio of 65% Britvic 35% AG Barr. Yesterday (11 July), the board of Britvic rejected the proposal and has agreed with AG Barr to terminate discussions.
The merger between the two companies had first been mooted roughly a year ago, however regulators blocked the move at the time. In the months since, Britvic has engaged in cost saving measures to put itself in a 'much better place' financially.
Following the announcement, Britvic's Chairman Gerald Corbett commented: "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."
© 2013 - Checkout Magazine by Stephen Wynne-Jones