Britvic and AG Barr get green light from competition watchdog

9th Jul 2013 07:23

Soft drinks maker Britvic confirmed that the Competition Commission has formally approved its possible merger with Scottish rival AG Barr. "The CC's final decision is that the possible merger is not expected to result in a substantial lessening of competition," Britvic confirmed in a company statement.In February a possible merger between Irn Bru-maker AG Barr and Britvic, which makes the Robinsons and Tango brands, collapsed after the competition watchdog launched an investigation.Britvic's Chairman, Gerald Corbett, commented, "The merger lapsed in February when the deal was referred to the Competition Commission. We would obviously consider any proposal tabled in the interests of shareholders."Indicating that Britvic might be having second thoughts about a potential merger, he added: "Britvic is in a very different position to last summer when the merger was agreed. We have a new Chief Executive in Simon Litherland...the Board is confident of driving £30m of cost savings over the next three years and of the enhanced international expansion opportunities.""In addition, performance has improved, the merger benefits are materially less than they were and our share price is almost twice the level it was. Britvic's prospects as a stand-alone company are bright."CJ