£1.4bn merger talk adds fizz to Irn-Bru and Britvic

THE makers of top fizzy drinks Tango and Irn-Bru are poised for a mega £1.4billion merger.

Scotland’s AG Barr, which makes Irn-Bru, and Essex-based Britvic, which makes Tango, confirmed they had held talks.

In a statement they said a tie-up would “represent an opportunity for both companies”.

It’s already been agreed that Britvic shareholders would own 63% of any new company.

Shares in both companies fizzed yesterday, with Britvic worth £890 million after a 12 per cent rise and AG Barr up 4 per cent, valuing it at £500 million.

Barr, which is based at Cumbernauld, North Lanarkshire, has produced Irn-Bru from a secret recipe for more than 130 years.

Britvic, which owns Robinsons, J2O and makes Pepsi under licence, was rocked by a product recall in July amid safety fears over new Fruit Shoot bottles.

Boss Paul Moody admitted shoppers faced six months of shortages.

Canaccord Genuity analyst Wayne Brown said: "In our view, the AG Barr management team have a very strong track record and would add significant strength to Britvic from both an operational and financial performance perspective."