Carlsberg, the Danish brewer, has agreed to a £3.3bn deal to acquire Britvic, the maker of drinks such as Robinsons squash and J20. The takeover will result in a single beverage company, Carlsberg Britvic, aimed at expanding its business in the UK and western Europe. Despite a previous lower offer being rejected, the final deal will provide existing Britvic investors with £13.15 per share. The acquisition is expected to diversify Carlsberg’s portfolio and enhance its global partnership with PepsiCo. On the same day, Carlsberg also agreed to take control of its UK brewing joint venture with Marston’s for £206m. Russ Mould, investment
director at AJ Bell, said Britvic would add "some diversification" to
Carlsberg's portfolio. "The Danish outfit is having to react
to a world in which younger age groups are less likely to indulge heavily in
alcohol," he said. Britvic holds an exclusive licence with US
firm PepsiCo to make and sell brands such as Pepsi, 7up and Lipton iced tea in
the UK, and Carlsberg also has a bottling deal with the US company.
Blog Q: What are the potential benefits for Carlsberg in acquiring Britvic and taking control of its UK brewing joint venture with Marston’s?
