The U.K.’s Competition and Markets Authority, along with the European Commission, has approved the $4.23 billion (£3.3 billion) acquisition of British soft drinks maker Britvic PLC (GB:BVIC) by Danish brewer Carlsberg A/S (DE:CBGC). The regulator stated that the deal does not require further review and meets all regulatory conditions for the proposed takeover. Following the announcement, Britvic shares gained 0.89% as of writing. Meanwhile, Carlsberg shares listed in Denmark rose over 2%.
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Britvic’s portfolio features a wide range of brands, including popular names like Tango, Gatorade, Robinsons, Mountain Dew, and 7UP.
Carlsberg Secures Green Light for Britvic Takeover
Carlsberg initially made offers of 1,200p and later 1,250p per share to acquire Britvic in June, both of which were declined. The two companies ultimately reached an agreement in July, finalizing the takeover at 1,315p per share, valuing the UK-based company at £3.3 billion. The transaction is expected to take effect on January 16, 2025, after the final court approval at a hearing on January 15.
Carlsberg views the acquisition as a strategic step to expand its portfolio in the non-alcoholic beverage market, capitalizing on the rising consumer demand for alternative drink options. Additionally, Carlsberg will take over Britvic’s bottling agreement with PepsiCo (PEP) as part of this deal. Carlsberg, which already bottles PepsiCo products in several markets, sees this as an opportunity to expand into more regions in the future.
Meanwhile, Britvic’s shares will be suspended on January 17, followed by the cancellation of their listing on January 20, 2025. Moreover, Britvic shareholders will receive a special dividend between January 16 and January 30.
Is Britvic a Good Share to Buy?
According to TipRanks, BVIC stock has received a Hold rating from Kepler Capital in the last three months. The Britvic share price forecast is 1,290p, which is 1.15% below the current level.
