FDBusiness.com

Following discussions, the boards of Britvic and AG Barr have decided not to proceed with a possible merger after the proposal received clearance from the Competition Commission on 9 July. According to Britvic, it received a new proposal from AG Barr for a merger with a shareholder ratio for the combined business 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 has rejected the proposal and has agreed with AG Barr to terminate discussions.

Britvic’s chairman Gerald Corbett says: “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.”

In accordance with Rule 2.8 of the Takeover Code, AG Barr has issued a statement confirming that it does not intend to make an offer for Britvic.