Britvic, the company behind brands such as Robinsons squash, has rejected a second takeover offer from Carlsberg worth around £3bn.
The Hemel Hempstead-headquartered company, which has an exclusive licence with PepsiCo to make and sell Pepsi Max, 7up, Rockstar Energy and Lipton Ice Tea in the UK, said the proposal “significantly undervalues” the business.
Carlsberg originally made its first offer of 1,200p per share on June 7 and increased its offer to 1,250p per share on June 11.
However, the board of London-listed Britvic rejected the proposal on June 17, it has been announced.
Carlsberg said it is now “considering its position”.
Carlsberg eyes ‘appealing long-term growth’
It added: “Carlsberg takes a disciplined approach to evaluating acquisition opportunities and will only proceed with a transaction that is strategically and financially attractive to Carlsberg and its shareholders.
“Any offer, if made, is likely to be solely in cash and is expected to be fully debt financed.
“Carlsberg believes that the potential transaction would enable it to capture appealing long-term growth opportunities from Britvic’s comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record.
“The potential transaction is fully aligned with Carlsberg’s ambitious growth agenda as set out in its Accelerate SAIL strategy announced in February 2024.”
Britvic’s board unanimously rejects second takeover approach
In a statement issued to the London Stock Exchange, Britvic said: “The board together with its advisers carefully considered the second proposal, and concluded that it significantly undervalues Britvic, and its current and future prospects.
“Accordingly, the board unanimously rejected the second proposal on 17 June.
“The board remains confident in the current and future prospects of Britvic. It recognises its fiduciary duties and will consider any further proposal on its merits.”
In May, Britvic reported a strong six months thanks to the strength of Lipton Ice Tea, with the canned version’s launch bumping the brand’s revenue up 27.6 per cent.
The soft drink manufacturer reported a revenue jump 11.2 per cent over the last six months, with profit after tax rising 10.1 per cent.
Revenue growth was especially strong outside the UK, with new market Brazil increasing 34.7 per cent.
Volume growth spiked in the most recent quarter, jumping to 7.4 per cent, with an average of 4.4 per cent growth over the six months.