ANY attempt by Irn-Bru owner AG Barr to rekindle its planned reverse takeover of rival Britvic will be on much less favourable terms, if it happens at all, the England-based company has signalled.

The Competition Commission is expected to decide this summer whether Britvic, whose brands include Robinsons, Tango and Fruit Shoot, can combine with Cumbernauld-based AG Barr to create one of Europe's biggest drinks firms.

But some analysts put the chances of a deal now at less than 10%.

Gerald Corbett, chairman of Hemel Hempstead-based Britvic, said: "The Competition Commission is expected to announce its final decision by the end of July.

"The board will then decide, in light of the Competition Commission's decision, whether a transaction on the right terms with appropriate management and governance arrangements, can be consummated in the interests of shareholders.

"In the meantime, as we approach our busiest time of year, the management team, under our new chief executive, is totally focused on executing its new strategy."

Britvic's new chief executive Simon Litherland, who took the helm in February, yesterday unveiled plans to make £30 million of annual cost savings by 2016, including more than 300 job losses.

Britvic also posted a 51.2% rise in pre-tax profit to £37.5m for the 28 weeks to April 14.

The plans make the £40m of savings promised through the combination with AG Barr less attractive, although analysts think these could still amount to £20m.

Britvic's shares closed up 50.3p or 10.7% at 522.5p.

They have more than doubled since July last year when the company was hit by the recall of Fruit Shoot products due to a faulty cap.

The two companies agreed an all-share deal in November which would have handed Britvic shareholders 63% of the company, with its operational headquarters located at its base in Hertfordshire.

AG Barr chief executive Roger White would have run the combined company and its formal headquarters would have been in Cumbernauld. That deal lapsed in February, when the Competition Commission launched its investigation.

An AG Barr spokesman said: "As expected, Britvic has delivered an improved performance which reflects the forecast recovery trajectory following the difficulties that they experienced last year.

"AG Barr remains positive regarding the future prospects and the compelling rationale of a Combined Barr-Britvic business delivered by the best of both management."

If talks do restart in August then it is understood Britvic is likely to pursue a more conventional takeover of its smaller rival.

It is believed that with Britvic's attention now focused on expansion on markets such as the United States and India, some at the company see Mr White's likely role in a combined entity as just head of the UK business not the whole business.

The ending of a deal, however, could save a number of jobs in Scotland as AG Barr and Britvic expected to cut 500 posts during a merger. Ian Shackleton, analyst at Nomura wrote in a note for clients: "Although both Barr and Britvic have indicated that they would be interested in pursuing the proposed merger if the Competition Commission permits in July, we now see the likelihood here as small (under 10%) as Britvic appears to be capturing some of the perceived benefits by itself."

Matthew Webb, analyst at JPMorgan said that Britvic's announcement "serves as a 'declaration of independence".

But Wayne Brown at Cannacord Genuity said Britvic "remains a volatile company and lacks the track record of delivering sustainable earnings growth".

He added: "The Britvic board was supportive of the merger and, with the market backdrop increasingly challenging, we would be surprised if this view has changed."

AG Barr shares closed up 14p or 2.4% at 588.5p.