UK: Britvic, AG Barr ponder merger
By Olly Wehring | 5 September 2012
 |
A merger would create "one of the leading soft drinks companies in Europe", Britvic and AG Barr said |
UK soft drinks companies Britvic and AG Barr are in talks over a possible merger.
The two companies confirmed earlier today (5 September) that they have opened "preliminary discussions" over a share merger. Despite only being at an early stage, Britvic and AG Barr revealed that various details have already been set down.
Shareholders in Britvic would hold 63% of the merged entity, with AG Barr accounting for 37%. Also, the board would be "drawn equally" from both firms.
AG Barr's CEO, Roger White, would head up the new group, with John Gibney, CFO of Britvic, lined up to become CFO. The chairman of Britvic, Gerald Corbett, would assume the chairmanship, with Ronnie Hanna, AG Barr's chairman, would become deputy chairman. Each company would also nominate three non-executive directors.
"A merger would create one of the leading soft drinks companies in Europe, with a strong portfolio of market-leading brands," said Britvic this morning. "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."
At 0942 this morning, Britvic's share price was up by 10.12% to GBP361.86, with AG Barr's share price performing similarly, rising by 12.02% to GBP427.62.
To read Britvic's statement, click here.
Check back later for further coverage and full analysis of this story.
Expert analysis
Carbonated Soft Drinks in Europe
Carbonated Soft Drinks in Europe industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Essential resource for top-line data and analysis covering the Europe carbonated soft drinks market. Includes market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.
Sectors: Mergers & acquisitions, Soft drinks, Water
View next/previous articles
6 Sep 2012 -Currently reading -
UK: Britvic, AG Barr ponder merger
Related research
This report analyzes the Global market for Kids’ Food and Beverages in US$ Million. Annual estimates and forecasts are provided for the period 2006 through 2015....
The performance of RTD tea in the UK has previously been highly dependent upon the weather. However, due to significant sampling activity by Britvic in the summer of 2011, off-trade value sales saw astonishing growth of 35%....
Bottled Water in the United Kingdom
In 2011, bottled water saw off-trade value sales growth of 2% to reach £1.7 billion and volume sales were stagnent. Although, the economy recovered to some extent, the off-trade value sales growth posted in 2011 was less than the 4% seen in 2010. Con...
Related articles
just On Call - CAGNY 2013: Coca-Cola Enterprises puts faith in food for cola growth
Coca-Cola Enterprises aims to drive growth in its cola stable this year in all of its markets, with the launch of an advertising campaign encouraging consumers to drink "Coke with food".
There are currently no comments on this article
Be the first to comment on this article