UK: Britvic, AG Barr merger has 30% survival chance - analyst
The Barr/Britvic merger was expected to complete this month
In a note today (19 February), Nomura said that indications from the two companies that they want to continue with the merger gives the the deal “a likelihood here of 30%”. Last week, the Office of Fair Trading referred the merger to the Competition Commission over concerns it could reduce competition between Britvic's Pepsi and Tango brands and Barr’s Irn Bru and Orangina brands.
Nomura also said although Britvic's first quarter trading looks positive, with group sales up by 4.8%, it expects a tough year ahead. The comment follows Britvic's disappointing performance last year because of bad weather in Europe and a costly recall on the Fruit Shoot brand. The company's FY net profits fell by 19.3% and sales dipped by 2.6%.
Although AG Barr was on its way to the church earlier this month, Britvic was still having second thoughts. The end of the affair leads Richard Corbett to ponder what went wrong for the two and what h...
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