Takeover Alert: Carlsberg Acquires Britvic for $4.2 Billion – What It Means for the Drinks Industry

London, UK – In a significant move in the beverage industry, Carlsberg has reached an agreement to acquire Britvic for £3.28 billion ($4.2 billion). The offer includes 1,290 pence per share, with an additional small dividend that increases the value to 1,315 pence per share, marking a sweetened deal for Britvic shareholders. The deal between the two companies was announced on Monday.

This takeover bid comes after Britvic had previously rejected an improved cash offer from Carlsberg in June. The British soft drinks maker believed that the previous proposals undervalued the company and its future potential. However, the new deal represents a step towards creating an enlarged international group that can capitalize on growth opportunities across various drink sectors, according to Ian Durant, the non-executive chair of Britvic.

Carlsberg’s CEO, Jacob Aarup-Andersen, highlighted the strategic value of combining Britvic’s soft drinks portfolio with Carlsberg’s beer products and distribution capabilities. This combination is expected to enhance their presence in the UK and other Western European markets. Notably, the agreement with PepsiCo plays a crucial role in the deal, as Britvic is responsible for bottling and distributing PepsiCo brands in the UK and Ireland.

The partnership between Carlsberg and PepsiCo, which involves waiving a “change of control clause” in their bottling contract, demonstrates a commitment to fostering a strong and successful collaboration. This strategic move is anticipated to position the combined entity for sustained growth and competitiveness in the global beverage market.

Overall, the acquisition of Britvic by Carlsberg represents a significant development in the industry and sets the stage for a new era of collaboration and growth in the beverage sector.