Britvic rejects sweetened £3b Carlsberg takeover bid

Soft drinks maker Britvic has rejected a £3.2b takeover bid from beer brewing giant Carlsberg.

 

The company, which makes drinks including Robinsons squash and Pepsi Max in the UK, said the proposal “significantly undervalues” the business and “its current and future prospects”.

 

Britvic said it received an offer from Carlsberg to acquire the company on 11 June.

 

It valued Britvic at 1,250 pence per share, equivalent to around £3b, but was unanimously rejected by the board on 17 June.

 

The move came after Britvic rejected an initial lower offer of 1,200 pence per share from Carlsberg earlier this month.

 

In an update to investors, Britvic said: “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.”

 

Carlsberg said it was considering its position following the rejection.

 

The beer giant said its second offer was a “compelling opportunity for Britvic shareholders to realise their investment in full”.

 

It said a takeover would allow it to capitalise the “long-term growth opportunities” of Britvic’s stable of well-known soft drinks brands, including J20, Mountain Dew and plant-based Plenish.

 

Carlsberg said: “The potential transaction is fully aligned with Carlsberg’s ambitious growth agenda.”

 

Britvic reported revenue of £880m in its half-year results, an 11% jump on the previous year.

 

The soft drinks maker’s pre-tax profits also rose by 10% to £59.9m.