IRN Bru owner AG Barr has confirmed it is in talks with fellow soft drinks giant Britvic about a possible merger.
A joint statement from both companies confirmed discussions are at an early stage following an approach by Cumbernauld-based Barr, which also owns Strathmore water, to Britvic, whose portfolio includes Britvic mixers and juices, Fruit Shoot and J2O.
If the merger goes ahead, Britvic shareholders would own 63% and AG Barr shareholders 37% of the new company, the statement said. The board of directors would be drawn from both companies, with AG Barr chief executive Roger White becoming chief executive of the combined group and Britvic’s chief financial officer John Gibney taking up the same role at the new company.
In the statement, the two firms said a merger would have “compelling industrial logic” and represent an opportunity for both companies to “enhance their industry position and achieve significant synergies and shareholder value”.