UK: AG Barr, Britvic merger abandoned
Barr has rejected an improved offer from Britvic
In a statement today (11 July), Barr said that it made a "more favourable" offer to Britvic's board this week than the initial bid in January. However, Britvic has rejected the "proposal", the Irn Bru producer said.
"As a result AG Barr confirms that it does not intend to make an offer for Britvic," the statement said.
Barr's chairman, Ronnie Hanna, said: "While we are disappointed that the opportunity to create significant value for both sets of shareholders has been rejected, the Board of AG Barr has every reason to be confident of its position as a stand-alone company."
He added: "AG 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."
Earlier this week the UK's Competition Commission gave final clearance to the proposed merger, which was first agreed last November. However, Britvic's chairman Gerald Corbett said it was in a "different position" to when the deal was first agreed and its prospects as a stand-alone company are "bright".
The merger would have created Barr Britvic Soft Drinks, one of Europe's largest soft drinks firms.
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