Carlsberg completes £3.3bn takeover of Britvic

Danish brewing giant Carlsberg has agreed a deal to acquire British soft drinks producer Britvic for £3.3 billion, marking a significant expansion into the soft drinks market.

The deal, announced on July 8, follows Britvic’s initial rejection of two earlier offers from Carlsberg, citing undervaluation of the company.

Under the terms of the deal, Carlsberg will pay 1,290 pence in cash for each Britvic share, along with a special dividend of 25 pence per share. This represents a premium of around 36 per cent over the closing price of Britvic shares on 19 June, before speculation about Carlsberg’s involvement began to circulate.

The acquisition is part of Carlsberg’s strategy to create an integrated UK beer and soft drinks business, using shared sourcing, manufacturing and distribution networks. It is also intended to strengthen Carlsberg’s partnership with PepsiCo, which has existing bottling agreements with both companies.

Britvic, known for brands such as Robinsons, J20 and Fruit Shoot, has a strong presence in UK and international markets including Brazil, France and Ireland. The company recently reported strong third-quarter sales, with revenue up 6.3 per cent.

In a similar move, Carlsberg also agreed to buy British pub group Marston’s 40 per cent stake in their joint brewing venture Carlsberg Marston’s Limited for £206 million in cash.

The deals reflect a broader trend among major brewers to diversify beyond traditional beer markets as some consumers switch to spirits or reduce their alcohol consumption. Analysts see the Britvic acquisition as a relatively low-risk deal with attractive financial prospects.

Carlsberg shares rose almost 4 per cent following the announcement, while Britvic shares rose almost 5 per cent. The Danish brewer is now set to make cost savings of around £100 million by integrating Britvic into its operations.

The successful acquisition comes after Britvic rejected offers from Carlsberg of £12 and £12.50 a share in June.