Soft drinks maker Britvic has rejected a £3.1 billion takeover bid from Danish brewing giant Carlsberg. Following the news, shares in Robinsons squash and J2O maker Britvic rose as much as 15% since Friday 21 June.
Britvic announced that it had received a proposal from Carlsberg to buy the entire business on June 11.
Britvic revealed that a potential bid for Carlsberg valued the company at 1,250p per share, or £3.1bn. However, Britvic rejected the proposal, stating that it “significantly undervalues Britvic and its current and future prospects”. It came a week after Britvic rejected Carlsberg’s 1,200p per share approach.
Britvic told shareholders: “The board has confidence in Britvic’s current and future prospects. It recognizes its fiduciary duties and will consider any further proposals on their merits. There can be no assurance that a firm offer will be made for the company, nor the terms of such an offer if one is made.”
Carlsberg stated in response: “Carlsberg believes that the proposal offers Britvic shareholders an attractive opportunity to realize their investment in full in cash at an attractive value. The proposal was rejected by Britvic’s board on 17 June 2024. Carlsberg is considering its position. Carlsberg evaluates acquisition opportunities with discipline and will only pursue a transaction that is strategically and financially attractive to Carlsberg and its shareholders .If an offer is made, it will likely be in cash only and is expected to be fully debt-financed.
Carlsberg believes that the potential transaction will allow it to capture attractive 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. The potential deal is fully in line with Carlsberg’s ambitious growth agenda outlined in its “Accelerate SAIL” strategy announced in February 2024.
Founded in 1847 by JC Jacobsen, Carlsberg has a portfolio of more than 140 brands, including premium and local mainstream beers, non-alcoholic brews, non-beer beverages and soft drinks. The company operates in 125 markets worldwide and has an annual turnover of more than £8.4 billion.
In 2023, the Carlsberg Group’s total volumes were 125.1 million hectoliters (12.5 billion liters), of which 101 million hectoliters were beer (10.1 billion liters) and the rest other beverages.
