Carlsberg adds soft drinks with £3.3bn Britvic deal

Danish beer brewer Carlsberg has agreed to buy soft-drinks and mixer firm Britvic (LSE:BVIC) for £3.3 billion.

Carlsberg will pay Britvic shareholders 1,315 pence per share, improving on previously rejected lower offers.

Ian Durant, Britvic’s non-executive chair, said the deal creates an enlarged international group positioned for growth in multiple drinks sectors.

Carlsberg CEO, Jacob Aarup-Andersen, highlighted that the combination of Britvic’s soft drinks and Carlsberg’s beer portfolios enhances the enlarged company’s proposition in the UK and Western Europe.

PepsiCo, which in the UK and Ireland has its products bottled and distributed by Britvic, had already agreed to waive a ‘change of control’ clause, in a side-deal with Carlsberg, to facilitate a transaction. As such, the bottling operations will continue.

“With this transaction, we are combining Britvic’s high-quality soft drinks portfolio with Carlsberg's strong beer portfolio and route-to-market capabilities, creating an enhanced proposition across the UK and other markets in Western Europe,” Aarup-Andersen said in a statement.

“The proposed transaction is attractive for shareholders of Carlsberg, supporting our growth ambitions, being immediately earnings accretive and value-accretive in year three.

“We are excited about expanding our global partnership with PepsiCo and believe that the longer-term opportunities will be very beneficial for both companies.”

In London, Britvic shares were up 4.7% closing Monday’s session at 1,267p, elsewhere Carlsberg stock was up about 3%.