Heineken & Carlsberg In Move For S&N

Leading brewers Heineken and Carlsberg have today announced they may be preparing to launch a joint bid to take over Scottish & Newcastle, the company behind Foster’s and Newcastle Brown Ale, as they meet to thrash out the arrangements for a consortium bid.

Both Heineken and Carlsberg have said that at this stage there is no firm offer on the table, or indeed even a firm promise to proceed with a bid. However, should the talks come to fruition it is unlikely that Scottish and Newcastle would be prepared to sell out easily.

Speaking today in reaction to the news, the brewery said from its Edinburgh base that any particular move for their business would not be welcomed with open arms, and would require to be substantial before it would consider relinquishing its independence.
Scottish and Newcastle is the largest brewery owned entirely in the UK, and prides itself on its independent status, free from the major brewery companies that dominate the worldwide market. With the potential move to acquisition on the table, Scottish & Newcastle were quick to point out that growing sales in emerging eastern markets and continued growth on the domestic front would givie it the resources to remain independent for the foreseeable future.

The company has urged its shareholders to hold on to their stock at present, in its attempt to dissuade any potential consortium bid which would see its business split in two between Heineken and Carlsberg, with Heineken taking the UK market and Carlsberg looking to acquire the French and Greek markets.

The move follows the resignation of Scottish and Newcastle chief executive last month which led to a slight depression in share prices. However shares today were up 19% on the news, erflecting the potential premium share sale that could come from the planned acquisition.

Story link: Heineken & Carlsberg In Move For S&N