Carlsberg is on the verge of submitting a third takeover bid for Britvic after Pepsi gave the potential deal its blessing.
Over the weekend, it emerged that Pepsi had agreed to waive a change of control clause it has with Britvic.
The clause would have allowed it to unilaterally terminate its lucrative bottling agreement with Britvic and make the latter a less attractive asset to Carlsberg.
Britvic’s long-standing deal with Pepsi gives it exclusive distribution and sales rights for brands including 7up, Pepsi Max and Lipton Iced Tea until 2040.
The update comes after Carlsberg disclosed last week that it had made two takeover bids for FTSE 250-listed Britvic, which also owns the Robinsons squash brand, this month.
Both approaches were rejected by Britvic, which said its latest £12.50 per share offer “significantly undervalues” its prospects.
However, Britvic’s board said it would “consider any future proposal on its merits”. An improved third offer at a price closer to £14 per share could come as early as this week.
In a statement, Carlsberg said: “Further to the speculation in the weekend press, Carlsberg confirms that it has reached agreement with PepsiCo, Inc. whereby PepsiCo has agreed to waive the change of control clause in the bottling arrangements it has with Britvic.
“This waiver will come into effect should an acquisition of Britvic by Carlsberg, which has the recommendation of Britvic’s board, proceed to completion.
“Carlsberg is considering its position. There can be no certainty that any offer will be made.
“A further announcement will be made as appropriate.”
Under UK takeover rules, Carlsberg has until 5pm on 19 July to either make a formal offer for Britvic or walk away.
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.