MERGER talks between Irn-Bru maker AG Barr and drinks firm Britvic will continue today.

Barr bosses confirmed talks over a possible £1.4 billion merger, that would create one of the biggest drinks companies in Europe.

Discussions between AG Barr and its Essex-based rival, which also owns the Robinsons, J2O and Fruit Shoot brands, about a potential tie-up are in their "early stages", as revealed in later editions of last night's Evening Times.

The deal could have implications for the workforce.

AG Barr employs 950 people throughout the UK. Five hundred of these are based in Scotland, the majority in Cumbernauld.

It has already been agreed that Britvic shareholders will own 63% of any new company, and AG Barr shareholders 37%.

Shares in both companies fizzed today, with Britvic's rising 12% , while AG Barr went up 4%.

Britvic sells 1.9 billion litres of soft drinks a year.

rebecca.gray@ heraldandtimes.co.uk