British soft drinks giant Britvic has rejected a takeover approach from Danish brewer Carlsberg.
In a statement issued in response to press speculation, Britvic revealed that Carlsberg had made an initial bid of 1,200 pence per share on 6 June, before sweetening its all-cash proposal five days later to 1,250p – a premium of 29% to the closing share price of 970 pence per share on 19 June.
Britvic subsequently rejected the approach that was worth £3.1bn on 17 June, saying it “significantly” undervalued the business, which owns brands such as Robinsons, Fruit Shoot, and J2O.
The statement added: “The Board remains confident in the current and future prospects of Britvic. It recognises its fiduciary duties and will consider any further proposal on its merits.”
As well as producing its own brands, Britvic is PepsiCo’s bottler in the UK. Carlsberg is PepsiCo’s bottler in Norway, Sweden, Switzerland, and several countries in Asia.
The brewer said the acquisition would enable it to “capture appealing long-term growth opportunities from Britvic’s comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record.”
After being rebuffed by Britvic, Carlsberg stated that it was now considering its position and there was no certainty that any firm offer would be made.
Shares in Britvic surged 15% in early trading today.
NAM Implications:
- Anything possible if the price is right.
- The buyers simply have to be able to justify the purchase price and ROI to stakeholders afterwards.
- Either way, anticipate changes…
