Soft drinks manufacturers AG Barr and Britvic are to merge in a move that will create one of Europe’s largest soft drinks companies.

The Irn Bru and Robinsons makers had opened discussions about a merger in September.

The new combined company will be called Barr Britvic Soft Drinks plc and is expected to record annual sales of more than £1.5bn.

The merger ratio will leave Britvic shareholders with approximately 63% of the new company and AG Barr shareholders with 37%.

The merger would create a “world-class soft drinks company,” Britvic non-executive chairman Gerald Corbett said.

“AG Barr and Britvic are a fantastic fit with complementary strengths and we will benefit from very significant synergies,” he added.

The head office of Barr Britvic will be in Cumbernauld, Scotland, which will also be its registered office, while the new group’s operational headquarters will be located at Britvic’s existing head office in Hemel Hempstead, England.

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