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Pepsi supports Britvic merger

PepsiCo has given its support to the merger of AG Barr with Britvic, which may otherwise have run into difficulties over a distribution deal.

15 November 2012

PepsiCo has given its backing to the merger of AG Barr and Britvic.

The company could have proved a stumbling block to the merger, which was agreed after extensive business negotiations, due to its deal with Britvic for the firm to distribute PepsiCo products in the UK and Ireland.

However, PepsiCo has given its blessing to the deal and the new merged firm will go on selling Pepsi products.

Speaking in a conference call, Britvic chief executive officer Paul Moody said: "The key point to know is that clearly in announcing the merger this morning we’ve done so with the support of Pepsi."

The deal involves products such as Pepsi, 7UP and Gatorade being sold by Britvic.

Merger and acquisition consultants may prove invaluable when a company has to deal with third-party relationships that could be affected by changes in ownership.

AG Barr and Britvic confirmed plans to merge this week after lengthy talks and two extensions by the Takeover Panel to the deadline by which the pair had to either announce a deal or walk away.

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