Partner Article

Possible Irn Bru merger could cut 500 jobs

The soft drinks manufacturer A.G. Barr, which produces Scottish “national drink” Irn Bru, announced a possible merger with Britvic on Wednesday.

A. G. Barr’s announcement has raised fears amongst workers that 100s of Scottish jobs could be lost if the transaction went ahead.

The company said they were in preliminary discussions, however their announcement did not mean a deal would go ahead.

It was revealed that a merger would be based on “industrial logic” and would enhance both parties’ positions in the sector to become one of the largest drinks companies in Europe.

A joint statement said savings of £35m a year could be made, while a potential headcount loss of between 8 and 12% could be incurred.The firm, which produces fruit drink Rubicon, Tizer and Strathmore spring water, could shed around 500 jobs if the transaction went through.

Britvic shareholders would take a 63% slice of the business, while A.G Barr’s shareholders would take the remainder, and board members of the newly created firm would be selected equally from both companies.

A.G Barr released a statement that said: “Discussions are at an early stage and, whilst there can be no certainty at this stage that such discussions will conclude successfully, agreement has been reached with respect to certain key aspects of the merger.”

This was posted in Bdaily's Members' News section by Miranda Dobson .