Barr and Britvic merger delayed

Drinks firms AG Barr and Britvic will have to wait until at least February to see if their merger will get the thumbs up from the regulator as the Office for Fair Trading (OFT) continues to probe the deal.

Drinks firms AG Barr and Britvic will have to wait until at least February to see if their merger will get the thumbs up from the regulator as the Office for Fair Trading (OFT) continues to probe the deal.

The OFT is looking at whether the merger could result in a "substantial lessening of competition" in the UK drinks industry.

The combined group will have a formidable portfolio of brands, including Irn-Bru, Robinsons, Fruit Shoot and J20.

"[We] have been informed...that the OFT is extending the timetable for its decision on the merger as it has not yet completed its review," the firms said in a joint statement.

"As a result, the timetable for the implementation of the merger is being extended and the anticipated effective date of the merger will no longer be January 30th 2013 as previously announced.

"Britvic and A.G. Barr are awaiting a revised target decision date from the OFT (expected to be in February)," they said.

Under the terms of the merger Britvic shareholders will receive 0.816 AG Barr shares for every Britvic share held.

This means Britvic shareholders will end up controlling 63% of the combined company and AG Barr shareholders 37%.

However, the Barr name gets top billing in the new name of the group, which will be Barr Britvic Soft Drinks.

As for the dividing up of management positions, AG Barr's Chief Executive Officer (CEO), Roger White, will hold the same position in the combined group, while John Gibney, currently CEO of Britvic, will be Chief Financial officer of the combined group.

Britvic also enjoys a strong relationship with US soft drinks leviathan, Pepsi Cola and the latter has given the thumbs-up to the merger.

Recommended

HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022
How to be better at selling stocks
Investment strategy

How to be better at selling stocks

There is plenty of advice around about buying stocks, but not so much about when you should sell. John Stepek explains the two key things to know abou…
14 Jan 2022
Share tips of the week – 14 January
Share tips

Share tips of the week – 14 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 Jan 2022
Fintech: how to profit as technology transforms banking around the world
Share tips

Fintech: how to profit as technology transforms banking around the world

Financial technology – from apps to APIs to the cloud – is rapidly transforming financial services. This will spell doom for some incumbent firms, whi…
14 Jan 2022

Most Popular

US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022
Tech stocks teeter as US Treasury bond yields rise
Tech stocks

Tech stocks teeter as US Treasury bond yields rise

The realisation that central banks are about to tighten their monetary policies caused a sell-off in the tech-heavy Nasdaq stock index and the biggest…
14 Jan 2022