Black day for Carlsberg: the group’s actions Danish shares suffered one of the worst drops in the last four years, falling by 7% in the session on Friday 21 June (around 1pm). The debacle was triggered by the rejection by Britvic, a British producer of soft drinks, of the proposed $3.9 billion acquisition (approximately £3.11 billion).
Such a marked splash has not been seen since March 12, 2020, when The stock had fallen by 8.77%. Meanwhile, Britvic shares are up 6.5% (around 1pm) on the back of the news.
Britvic said it had rejected an offer from Carlsberg on 17 June of 1,250 pence per share, arguing that the proposal “significantly undervalues Britvic and its future prospects”. This rejection follows an earlier offer of 1,200 pence per share, which was also rejected.
Carlsberg confirmed the refusal, calling its proposal “an interesting opportunity” for Britvic shareholders to liquidate their investment. Now the brewery you have until July 19th to decide whether to make an offer final or abandon the transaction.
Carlsberg’s goals
Carlsberg’s strategy is to expand beyond the beer market. The company’s “beyond beer” product portfolio, which includes apple cider Somersby and hard seltzers Garage, it is only 2% of the total volume (February 2024 data). In comparison, the brand Tuborg is around 15% of volumes, while Carlsberg beer represents 10%.
Britvic, known for brands Robinsons And Tangoalso has exclusive bottling rights for the brands of carbonated drinks PepsiCo in Britain, thanks to a deal signed in October 2020. Carlsberg has similar deals with PepsiCo in Norway, Sweden, Switzerland, Cambodia and Laos, and bottles Coca-Cola in Denmark and Finland. (All rights reserved)
Posting time: 06/21/2024 12:43
Last update: 06/21/2024 1.25pm
