S&N rejected Carlsberg and Heineken’s original 720p-a-share offer, before accepting 800p-a-share.

After months of speculation, Scottish & Newcastle have agreed to a £7.8 billion takeover by Carlsberg and Heineken.

The brewer agreed to the 800p-a-share offer following the Takeover Panel’s imposed midday deadline. Carlsberg and Heineken had originally offered 720p-a-share in October 2007, however the bid was rejected.

The companies jointly own Russian brewer BBH, the country’s top beer company with a 38% share of the market. It is believed that uncertainty surrounding the value of BBH contributed to the companies’ lengthy takeover discussions.

Commenting on the deal, Jorgen Buhl Rasmussen, President and CEO of Carlsberg, said: “This is a truly transformational transaction for Carlsberg. In a single step we have created the world’s fastest growing global brewer. We now have full control of our destiny in Russia and other BBH territories and I am truly excited about the new opportunities this will present to us.”
 
Jean-Francois van Boxmeer, Chairman and CEO of Heineken, added: “This is a significant strategic step for Heineken. It gives us undisputed leadership in Europe and creates significant opportunities in profitable markets to grow the premium Heineken brand.”
 
The deal heralds the end of the independence of brewer of John Smith and Newcastle Brown Ale.

More information on the companies can be found at www.scottish-newcastle.com, www.carlsberg.co.uk and www.heineken.com.

By Natasha Piscitelli