It is believed that the proposed deal to bring together Britain's biggest soft drinks firms have lost its steam as the companies wait for regulatory clearances.

Industry major, Britvic, which makes Robinsons range, Pepsi and Tango in the UK, had agreed to a deal with Irn Bru manufacturer AG Barr in the previous year. However, the Office of Fair Trading had referred the deal to the Competition Commission. The Commission is largely expected to give its approval and has already indicated a provisional approval but many believe that Britvic is losing interest in the deal.

Britvic's Chairman Gerald Corbett, "Our company is in a different place to last summer when the terms of the merger were agreed. The cost savings from merging are less, we are performing better, we have new management and we have a new strategy to deliver good growth -internationally, as well as in the UK."

On the other hand, AG Barr, which offers Tizer and fruit juice range Rubicon, is still keen to join the larger industry player in the country. It said that the company will continue to work with the Competition Commission for the assessment and for reconsidering the merger with Britvic.