AG Barr and Britvic proposed merger collapses

The companies had received clearance for a merger, which was first proposed last year, but Britvic had recently made comments distancing itself from the deal.

If successful, the deal would have created one of Europe’s leading soft drinks companies with a combined value of c£1.4bn.

Favourable terms​

AG Barr said that the new proposal was for an offer on more favourable terms for Britvic shareholders than the offer recommended by the respective boards and subsequently approved by the company’s and Britvic’s shareholders in January.

As a result of its offer being rejected, AG Barr confirmed that it did not intend to make an offer for Britvic.

AG Barr chairman Ronnie Hanna said: "While we are disappointed that the opportunity to create significant value for both sets of shareholders has been rejected, the board of AG Barr has every reason to be confident of its position as a stand-alone company. AG Barr continues to outperform the UK soft drinks market and will follow its successful long-term strategy supported by a strong balance sheet, unique brands and a well invested asset base."

'A different place'​

Last month, Britvic chairman Gerald Corbett said: “Our company is in a different place to last summer when the terms of the merger were agreed.

“The cost savings from merging are less, we are performing better, we have new management and we have a new strategy to deliver good growth internationally as well as in the UK. These are among the issues the board will reflect on in August once the Competition Commission’s conclusions are known, in order to ensure that it acts in the best interests of Britvic’s shareholders.”