Britvic prepares to call time on £1.6bn merger plans for Irn-bru maker

RENEWED doubts have surfaced over the troubled £1.6 billion merger plans for Scots softs drinks firm AGBarr and its larger rival Britvic.

Reports last night suggested Simon Litherland, the recently appointed Britvic chief execu- tive, will today lay out plans for the soft drinks maker to continue as a standalone company.

According to the Sky News website, Mr Litherland’s new strategy will be unveiled alongside the company’s interim results and is not predicated on the merger the IrnBru maker being completed. They include plans for tens of millions of pounds in annual cost savings, it was reported.

The tie-up between Britvic and Cumbernauld-based AG Barr was agreed last November but has since run into obstacles.

In February, the Office of Fair Trading referred the deal to Britain’s anti-trust watchdog due to competition concerns over certain brands.

It expressed concern the tieup may lead to higher prices for consumers and reduced competition among certain soft drink brands.

That move wiped about £46 million off the Scots firm’s market value and £100m from Hertfordshire-based Britvic’s valuation.

Britvic, which produces PepsiCo Inc brands such as Pepsi, Mountain Dew Energy and 7UPin Britain and Ireland, as well as products such as Robinsons squash and Tango, could not be reached for comment.

Aside from its most famous creation, Cumbernauld-based AG Barr – headed by chief executive Roger White – has Tizer, Orangina, Strathmore Spring Water and Rubicon.