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AG Barr considers hostile bid for Britvic | |
(about 11 hours later) | |
AG Barr is considering a hostile bid for Britvic, following the lapse of the two companies' agreement on a merger. | |
They received Competition Commission approval to combine their market shares, but Britvic does not now want to go ahead. | |
The merger plans were first announced in September 2012, in a deal the two companies said had "compelling industrial logic". | The merger plans were first announced in September 2012, in a deal the two companies said had "compelling industrial logic". |
Britvic has now said its prospects as a stand-alone company were "bright." | Britvic has now said its prospects as a stand-alone company were "bright." |
Meanwhile AG Barr said little had changed to alter its previous conviction that a merger represented a "unique" opportunity for shareholders. | Meanwhile AG Barr said little had changed to alter its previous conviction that a merger represented a "unique" opportunity for shareholders. |
In a statement, the Cumbernauld-based maker of Irn Bru said it will "actively reconsider a potential merger with Britvic". | |
Following the Competition Commission ruling, market analysts argued there was still a logic to the two companies being combined, giving them more market share and cost savings. | |
'Positive step' | |
However, Britvic has come under new management since the deal lapsed in February. Its share price has risen, and it is in a stronger financial position as it applies cost savings on its own. | |
The Takeover Panel has now set a deadline of 30 July for AG Barr to make an offer for Britvic. | |
AG Barr has a strong presence in Scotland and is best known as the maker of Irn Bru. Its other brands include Tizer, KA and Strathmore Water. | |
Britvic is the licensed producer of PepsiCo brands in the UK, and also makes Tango, 7UP, and Lipton Ice Tea. | Britvic is the licensed producer of PepsiCo brands in the UK, and also makes Tango, 7UP, and Lipton Ice Tea. |
Britvic's chairman Gerald Corbett said: "We would obviously consider any proposal tabled in the interests of shareholders. | |
"However, Britvic is in a very different position to last summer when the merger was agreed. We have a new chief executive in Simon Litherland, who has done a fantastic job in implementing his new plan for Britvic." | "However, Britvic is in a very different position to last summer when the merger was agreed. We have a new chief executive in Simon Litherland, who has done a fantastic job in implementing his new plan for Britvic." |
He added: "The merger benefits are materially less than they were and our share price is almost twice the level it was. Britvic's prospects as a stand-alone company are bright." | He added: "The merger benefits are materially less than they were and our share price is almost twice the level it was. Britvic's prospects as a stand-alone company are bright." |
AG Barr described the Competition Commission's final ruling as a "significant positive step and, in light of this, will actively reconsider a potential merger with Britvic". | AG Barr described the Competition Commission's final ruling as a "significant positive step and, in light of this, will actively reconsider a potential merger with Britvic". |