Carlsberg’s recent bid to acquire Britvic, offering 1,250p per share, totaling approximately £3.1 billion, was decisively rejected on Monday (17 June). This follows a prior bid earlier in June at 1,200p per share, which also met rejection.
Britvic, renowned for brands like Robinson’s Fruit Shoot and J20, in addition to its UK licensing agreement with PepsiCo, issued a statement today reaffirming that the board and advisors carefully evaluated the second proposal. Ultimately, they concluded that the offer “significantly undervalues” Britvic, considering both its current standing and future prospects.
The announcement saw Britvic’s shares surge by 15%, subsequently moderating to a still notable increase of approximately 10-11% as of the latest trading update.
CEO Jacob Aarup-Andersen of Carlsberg, reflecting on the firm’s performance, highlighted solid revenue growth despite challenging conditions. He emphasized Carlsberg’s robust financial position and its strategic focus on enhancing brand investments to foster long-term growth aligned with their SAIL’27 priorities.
Carlsberg’s change in approach includes a global repositioning campaign for its flagship beer brand, spanning 120 markets. This initiative, articulated by Carlsberg global brand director Lynsey Woods, underscores a renewed emphasis on authenticity and resonating with consumers through significant moments.
The rejection marks a strategic decision by Britvic to assert its value and potential amid ongoing industry dynamics, while Carlsberg continues to navigate strategic growth avenues amidst evolving market landscapes.
