Britvic and Barr shares slide as OFT postpones merger

<p>Shares in Britvic and AG Barr have fallen as the OFT postpones their merger agreement.</p>

Shares in Britvic and AG Barr have fallen in London today (January 14th) as the Office of Fair Trading (OFT) has postponed a decision on the companies' merger.

Both drinks firms hope to complete the deal before January 30th after shareholders voiced their support of the move.

The firms agreed an all-share deal in November, which would give Britvic shareholders 63 per cent of the new company and Barr shareholders would get 37 per cent.

With an annual sales total of more than £1.5 billion, the combined company would be called Barr Britvic Soft Drinks, but the OFT has told Barr and Britvic that it needs more time to complete its review of the merger.

A joint stock market announcement from both businesses: "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."

At 14:30 GMT, Britvic shares fell by 0.4 per cent to 410.10p per unit, while AG Barr shares slumped by 0.7 per cent to 491.70p.

Learn all about CFD trading strategies and major individual shares at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.