Britvic and Irn-Bru maker AG Barr have thrashed out the key terms of a merger that would create a soft drinks giant with a combined turnover of more than £1.5bn.

The companies have provisionally agreed that Britvic shareholders would own 63% of the new enlarged group and AG Barr shareholders the remaining 37%.

AG Barr chief executive Roger White would head the combined company, with Britvic CEO Paul Moody stepping down. Britvic chief finance officer John Gibney would take on that role at the new business.

“The combination represents an opportunity for both companies to enhance their industry position, and achieve significant synergies and shareholder value,” said the companies.

However, analysts are split on the merits of the deal for Britvic, with some suggesting the terms were disadvantageous to Britvic, while others said Britvic had more to gain in expertise and financial strength.

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