Britvic and AG Barr announce merger talks
Beverage companies Britvic and AG Barr are involved in merger talks.
Beverage company Britvic has announced it is undergoing business negotiations with rival soft drink maker AG Barr over a possible merger.
According to the New York Times, the deal is worth around $2.2 billion (£1.4 billion) and would create one of Europe's largest soft drink companies if the all-stock merger goes ahead.
Discussions are currently in the early stages, but if the proposals are taken forward, Britvic's shareholders would receive a 63 per cent stake in the combined company.
Meanwhile, AG Barr would control the remaining 37 per cent stake and the firm's chief executive Roger White would become the new organisation's head.
Speaking to the Daily Telegraph, Jamie Isenwater of Deutsche Bank said the proposed merger is an "incredibly opportunistic move" by AG Barr.
He added: "It all looks like a pretty poor deal for Britvic shareholders. It's structured as a merger but it very much looks like a reverse takeover by Barr."
Posted by Ken Hayes
Press Reports, September 6th