AG Barr turning its attention from Britvic to Lucozade?

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Following getting the go-ahead from the Competition Commission, Britvic has decided to reject AG Barr’s improved offer for a merger of the two companies and has agreed to terminate discussions with the company.



17 July 2013

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The proposed merger would have created one of the largest soft drinks companies in Europe under Barr Britvic Soft Drinks.

Following Competition Commission clearance a statement from the company explained, “Britvic received a new proposal from AG Barr for a merger with a ratio of 65% Britvic 35% A G Barr which represented only a small improvement on the previous terms as announced on 14th November 2012 and was at a considerable discount to the current market capitalisation ratios of the two companies”.

The offer’s rejection is down to a number of factors including much improved performance from Britvic, “… a £30 million cost-reduction programme and accelerating international expansion”.

However Irn Brew producer AG Barr may have turned its attention on the putting up for sale last April of GlaxoSmithKline’s Lucozade and Ribena brands.

A report in The Sunday Times suggests that it may seek out partners in Blackstone or Lion Capital for the purchase of the two GSK brands which together generated nearly €700 million in 2012.

With Lucozade being distributed in 30 markets and Ribena being sold in 24 countries, such a purchase, if funded by such a partner, would offer AG Barr access to a global platform.



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