A SOFT drinks firm with operations in Huddersfield has announced a 1.4bn merger deal – but warned that 500 jobs are to go.

Britvic, which has a bottled water business at Birkby with about 100 employees, plans to link-up with AG Barr to create one of Europe’s leading soft drinks firms with annual sales of more than £1.5bn.

However, the merger will come at the expense of up to 500 jobs after the two companies forecast a reduction of between 8% and 12% in their combined staffing of just over 4,000 people.

A spokeswoman for Britvic was unable to comment on where the job cuts might occur, saying: “We don’t have that level of detail yet.”

Britvic, which bottles Pennine Spring Water and Drench at the former Ben Shaws factory in Willow Lane, Birkby, and also has Robinsons, Fruit Shoot, R Whites and Tango among its brands, employs about 3,300 staff.

Scottish firm AG Barr, which owns Irn Bru, Tizer and Rubicon, has just under 1,000 staff.

It was confirmed that Britvic shareholders will own 63% of the new company – to be called Barr Britvic Soft Drinks – with AG Barr holding the rest. The deal is still subject to shareholder approval.

The tie-up, which was first disclosed by the companies in September, is expected to generate £40m a year by 2016 through savings in overheads and buying costs, as well as in supply chain and distribution benefits.

The merger announcement said: “The directors of AG Barr and Britvic believe the net reduction in combined group headcount to be in the range of 8% to 12%.

“The number of employees and locations affected will depend on the outcome of the integration planning and these changes will only come into effect as synergies are realised over the three years post completion.”

AG Barr chief executive Roger White will lead the combined company.

Britvic chief executive Paul Moody, who has led the business since October, 2003, will not switch to the combined company.