Boards of Directors Britvic and Carlsberg We have reached an agreement on the terms of the offer made by the Danish beer company. It will take over the British soft drinks maker for £3.3 billion (€3.9 billion).the companies said. The deal comes after Carlsberg improved its previous offer by around £3.1 billion (€3.665 million). Under the terms of the agreed offer, the Danish company will pay 1,315 pence in cash for each Britvic share, including a cash payment of 1,290 pence, plus a special dividend of 25 pence through the procedure.
At the end of June, Britvitch rejected a second offer from Carlsberg to acquire the company at 1,250p per share, after the Danish company had made an initial offer of 1,200p earlier that month under the Britvitch procedure. In this way, the directors of Britvitch, advised by Morgan Stanley and Europa Partners, announced their intention to unanimously recommend that Britvitch shareholders vote in favour of Carlsberg’s offer.
Cost savings and efficiency improvements
For its part, the Danish company pointed out that It expects the integration of Britvic to enable it to achieve annual cost savings and efficiency improvements. The proposed transaction is attractive to Carlsberg shareholders, supports our growth ambitions and immediately leads to increased earnings and value in year three,” said Jakob Arup-Andersen, Carlsberg’s chief executive.
“The deal creates an expanded international group that is well positioned to do so,” Taking advantage of growth opportunities “Across multiple beverage sectors,” said Ian Durant, non-executive chairman of Britvic, who highlighted Carlsberg’s deal with PepsiCo, which provides the combined group with a strong platform for continued success.
Agreement with PepsiCo
In this sense, Carlsberg reported at the end of June that it had reached an agreement with PepsiCo under which the American multinational agreed to waive the change of control clause in the agreements it maintains with Britvic, its UK bottling subsidiary. Carlsberg also announced, The concession agreed with PepsiCo “will come into effect if Carlsberg’s acquisition of Britvic is completed.”Thus avoiding the additional complexities of a virtual transaction.
“We look forward to continuing our successful and long-standing partnerships with Carlsberg and Britvic,” said Silvio Popovici, CEO of PepsiCo Europe, following the Britvic-Carlsberg deal, adding that the merger “will create stronger sales and distribution capabilities for our brands in key markets.”
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