Cumbernauld-based AG Barr, the maker of Irn-Bru and Rubicon, began trading at 415 pence per share on Monday before surging as high as 482p after confirmation of discussions over the tie-up was released to the stock market. It ended the week at 468p after falling 13.6p during Friday trading.

Meanwhile Britvic – which has brands like Tango, Robinsons and J20 in its stable – had started the week at 322.3p before rising to 376.6p. It finished at 356.6p, down 6.4p over the day, at the close of trading yesterday.

Analysts have suggested AG Barr, which initiated the talks with its larger rival, is unlikely to move its headquarters from Scotland but neither side has given any details on this yet.

AG Barr chief executive Roger White would keep the same role if the transaction proceeds with the rest of the board made up of directors from both companies.

The deal would see the enlarged business 37% owned by existing AG Barr shareholders with the remainder going to Britvic investors.

Britvic has seen its share price dip from the high of 398p recorded in March.

Britvic and AG Barr are required to announce their intentions by October 3.