Britvic A.G.Barr merger in question pending Competition Commission probe
The proposed merger of soft drinks manufacturers Britvic and A.G.Barr lost some of its fizz after the companies announced that the Competition Commission had opened an investigation.
The proposed merger of soft drinks manufacturers Britvic and A.G.Barr lost some of its fizz after the companies announced that the Competition Commission had opened an investigation.
The groups reported that the Office of Fair Trading had referred the merger to the Competition Commission due to concerns that a tie-up could reduce competition between certain brands of A.G. Barr and Britvic.
A statement issued by Britvic reported that both parties believed that "the merger will not result in a substantial lessening of competition and that they will be able to demonstrate this to the Competition Commission".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, the probe represents a major set-back for the drinks makers, which previously announced that the effective date of the merger would be February 26th.
The investigation could take six months and after that both companies said there was no longer a guarantee the tie-up would even go ahead.
A statement from Britvic read: "The Competition Commission's investigation is expected to take approximately six months. If clearance is received from the Competition Commission on terms satisfactory to both A.G. Barr and Britvic, the boards of A.G. Barr and Britvic will each reconsider, at that time, the terms of a possible merger between A.G. Barr and Britvic.
"There can be no certainty or assurance that, following such clearance, any such merger would be forthcoming or that any offer will be made by either A.G. Barr or Britvic".
Britvic's brands include Robinsons, Fruit Shoot, R Whites and Tabngo. A.G.Barr's brands include Irn Bru, Tizer and Rubicon.
Britvic's share price was down 8.26% to 385.30p at 11:26 on Thursday.
MF
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Inflation holds steady at 3.8% ahead of BoE meeting
The rate of inflation did not rise in August, but the Bank of England is still expected to keep interest rates on hold tomorrow
-
Thousands of savers with £250k pensions take cash over tax-free money and IHT fears
With a record £70 billion withdrawn from pensions in the year to March, experts are concerned savers are making knee-jerk decisions without advice that could affect their long term wealth