Carlsberg and Heineken acquire Scottish & Newcastle

Nicole Mezzasalma

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The UK brewer has accepted a £7.8bn ($15.4bn) offer from Carlsberg and Heineken joint venture Sunrise Acquisitions Limited

UK brewer Scottish & Newcastle (S&N) has accepted a £7.8bn ($15.4bn) takeover bid from Carlsberg and Heineken joint venture Sunrise Acquisitions Limited. Under the deal, Carlsberg will acquire S&N’s shares in Baltic Beverages Holding (BBH), a Russian joint venture between the two companies which produces Baltika beer. In addition, Carlsberg will take over S&N’s French, Greek, Chinese and Vietnamese operations, while Heineken will be responsible for businesses in the UK, Ireland, Portugal, Finland, Belgium, India and the US. A statement from the companies said that the businesses will be separated “as soon as possible and in any event within 12 months” of the deal’s completion.

The offer will now be posted to S&N shareholders and is subject to approval by Heineken shareholders. The European Commission and other relevant competition authorities also need to approve the deal.

Carlsberg president and CEO Jorgen Buhl Rasmussen said: “This is a 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 excited about the new opportunities this will present to us.”

Heineken chairman and CEO Jean-François van Boxmeer 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. Our proven ability to create value from mature markets coupled with the step-change in revenue growth will drive our future expansion. I look forward to welcoming the Scottish & Newcastle employees into our business and learning from their unique experience and skills.”

S&N chairman Sir Brian Stewart said: “The management and employees of S&N have built a group with strong brands enjoying leading positions in mature markets in Western Europe and growing emerging markets. These include those covered by BBH, and shareholders will be better placed to assess their prospects as a result of today’s announcement. The S&N board believes that the consortium’s offer delivers a fair value for S&N, reflecting its growth prospects, and will recommend that shareholders accept.”