Carlsberg agrees $4.2 billion Britvic deal after third approach

By Barbara Kollmeyer

The third time looks to be a charm for Carlsberg, which announced Monday that it has agreed to take over Britvic in a deal valuing the U.K. drinks giant at GBP3.3 billion ($4.2 billion).

Britvic shareholders will receive 1,350 pence per share - 1,290 pence in cash and a special dividend payment of 25 pence per share, Carlsberg said in a statement. The Danish brewer said the new offer represents a 36% premium to the Britvic's June 19 closing price of 970 pence -- the day before speculation surfaced over a possible deal.

The deal has an enterprise value of GBP4.1 billion. Britvic spurned a 1,250 pence cash offer last month, and a 1,200 pence bid earlier in June.

Shares of Britvic (UK:BVIC) climbed 5% to 1266 pence, while those of Carlsberg (DK:CARL.B) rose 3.3% on Monday.

Britvic, a soft-drinks company that makes its own beverages including Robinsons and Tango and bottles Pepsi products in the U.K., last year earned GBP124 million on revenue of GBP1.75 billion.

The deal came after PepsiCo (PEP) agreed to waive a change-of-control clause in its bottling arrangements with Britvic, that would have given that company the right to scupper any deal. Carlsberg already has some bottling arrangements with PepsiCo.

Carlsberg said the acquistion of Britvic will build on its Nordic bottling business and strengthen its footprint in Western Europe.

Carlsberg separately announced that it will buy U.K. brewer Marston's (UK:MARS) 40% interest in its brewer joint-venture Carlsberg Marston's for GBP206 million pounds in cash. Marston's stock jumped 17% in London.

-Barbara Kollmeyer

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07-08-24 0346ET

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