Analysis

Analysis - Britvic performance fails to back merger stance

Most popular

What are Diageo's priorities for the years ahead?

Diageo Performance Trends 2014-2018 - results data

What can the spirits industry learn from Diageo?

Coca-Cola and packaging's ecommerce evolution

MORE

Britvic requires a “significant cultural change”, an analyst has warned while dismissing its chairman's claims performance has improved since it agreed to merge with AG Barr.

Canaccord's Wayne Brown said that Britvic chairman Gerald Corbett's reaction to the merger's clearance by UK competition authorities today (9 July) was “a total reversal of the board’s (previous) view”. “We question what has fundamentally changed since February 2013 when they openly supported the merger,” Brown said in a note today.

Corbett said this morning that Britvic's “prospects as a stand-alone company are bright”. He also said Britvic “is in a very different position to last summer when the merger was agreed”.

“Performance has improved, the merger benefits are materially less than they were and our share price is almost twice the level it was,” Corbett added.

However, Brown said Corbett's comments come “at a time when the underlying performance of Britvic has worsened and the competitive landscape in the UK has intensified”.

Brown also cast doubt on the Britvic board's past performance, saying “we see a fundamental difference in laying out a strategy and actually delivering one”, while highlighting its “failed M&A strategy”.

Brown added: “The ability to deliver on this strategy when a significant cultural change is required is challenging.”

To see just-drinks' full coverage of AG Barr and Britvic's proposed merger, click here.


Related Content

Britvic outruns cold conditions to post H1 2018 sales rise - results

Britvic outruns cold conditions to post H1 2018 sales rise - results...

Sales flatline for Britvic in Q1 fiscal-2018 - trading update

Sales flatline for Britvic in Q1 fiscal-2018 - trading update...

Britvic FY fiscal-2017 by region - results data

Britvic FY fiscal-2017 by region - results data...

AG Barr to cut staff as H1 sales, profits dip

AG Barr to cut staff as H1 sales, profits dip...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?