Britvic board approves £3.3bn takeover of Carlsberg

Britvic has become the latest British company to fall into foreign hands after it accepted a £3.3bn takeover bid from Carlsberg.

The drinks group, which owns Robinsons juice and Tango soft drink, backed a £13.15-a-share bid for the Danish brewer in a deal likely to lead to job losses in Britain.

The offer consists of £12.90 cash for each Britvic share and a special dividend of 25p.

The companies will be merged into one larger group, called Carlsberg Britvic.

Britvic rejected two previous bids from Carlsberg, worth £12 per share and £12.50.

The FTSE 250 group said last month that both proposals “significantly undervalued” the company.

But the latest bid was backed by Britvic’s board and shares rose 4.5 per cent to a record high of 1,264p. However, analysts suggested Carlsberg was buying Britvic cheaply.

“We believe Britvic shareholders should wait for a better offer,” said Andrew Ford of broker Peel Hunt.

Britvic’s history dates back to the 1930s, when a chemist in Essex began producing soft drinks.

One of the best-known brands is Robinsons, which had an 86-year sponsorship deal with the Wimbledon tennis tournament, which ended in 2022.

Britvic also has an agreement with Pepsi that gives it exclusive distribution and sales rights for brands including 7up, Pepsi Max and Lipton Iced Tea until 2040.

Carlsberg, which has been selling beer in the UK since 1868, distributes Pepsi drinks in Norway and Switzerland.

Carlsberg chief executive Jacob Aarup-Andersen told the Mail the takeover was a “vote of confidence in the UK economy” but warned the group would also look at job cuts.

He said this would mainly affect back-office jobs and those roles that are associated with a listed company. Britvic will no longer be a listed company after the takeover, having floated on the stock exchange in November 2005. Britvic employs around 1,700 people in the UK.

The takeover follows a series of acquisitions this year, which have seen packaging group DS Smith, telecoms testing company Spirent Communications and haulage firm Wincanton among those snapped up by overseas bidders.

Cybersecurity group Darktrace also backed a £4.2bn takeover by US private equity firm Thoma Bravo.

But miner Anglo American, retailer Currys and insurer Direct Line have rejected bids. The Carlsberg takeover requires the support of 75 percent of Britvic’s investors in a shareholder vote.

Susannah Streeter, analyst at Hargreaves Lansdown, said: “The deal gives Carlsberg the opportunity to expand its global partnership with PepsiCo.”