Carlsberg looks to have succeeded in its attempt to acquire Britvic, after the soft drinks maker’s board unanimously gave its approval to an improved £3.3bn takeover bid.
The Danish brewer is set to pay £12.90 per Britvic share, with Britvic also paying shareholders a 25p per share dividend.
It comes after Britvic rejected two earlier offers from Carlsberg as they “significantly undervalued” the supplier of Robinsons, Fruit Shoot and the PepsiCo portfolio in the UK.
The price to be received by shareholders represents a 36% premium on Britvic’s closing share price on 19 June – the day before news of Carlsberg’s interest in the soft drinks maker broke.
The 1,315p deal - which follows bids of 1,200p and 1,250p being rejected last month - represents a 36% premium to the Britvic closing price of 970p on 19 June before news of the potential takeover emerged.
Carlsberg said the acquisition represented a “highly attractive opportunity” for the group and supported its overall growth ambitions.
CEO Jacob Aarup-Andersen added the combination of the two groups created “an enhanced proposition across the UK and markets in Western Europe”.
Britvic chairman Ian Durant said the strategic merits of the offer were “compelling”.
“The proposed transaction creates an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors,” he added.
“Crucially, to remain competitive at a time when the market is being shaped by the trend of increasing consolidation among bottling partners, Carlsberg’s agreement with PepsiCo provides the combined group with a strong platform for continued success.”
Britvic’s board is unamimously recommending that shareholders vote in favour of the deal at an upcoming general meeting.
Read more: Why has Carlsberg tabled a £3bn bid for Britvic, and why was it knocked back?
Carlsberg separately announced a £206m deal to buy the remaining 40% of its brewing joint venture with Marston’s. It follows an initial partnership struck in 2020 between the two, with Marston’s now to become a focused pub group.
The Danish brewer said it intended to create a single integrated beverage company in the UK, to be named Carlsberg Britvic.
The management team would be made up of individuals from Carlsberg, Carlsberg Marston’s and Britvic.
Aarup-Andersen said: “We are pleased that the Britvic board is unanimously recommending our offer to Britvic shareholders.
“We look forward to welcoming Britvic’s employees into the Carlsberg family and creating an exciting, combined company for all employees.
“We are committed to accelerating commercial and supply chain investments in Britvic, and we are confident that Carlsberg Britvic will become the preferred multi-beverage supplier to customers in the UK with a comprehensive portfolio of market-leading brands.”
PepsiCo, which already gave Carlsberg its blessing for a deal by waiving rights to cancel a longstanding licence with Britvic in the UK in the event of a takeover, said it looked forward to building on the “successful partnerships with both Carlsberg and Britvic”.
European CEO Silviu Popovici added: “We believe that the combination of Carlsberg and Britvic will create even stronger sales and distribution capabilities for our winning brands in important markets. We look forward to continuing to expand the partnership into further important markets in the future.”
Shares in Britvic jumped 4.4% to 1,263p this morning on the announcement, while Carlsberg rose 3.6% to DKK 867.20.
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