S&N Reject Second Takeover Bid

Edinburgh-based brewery Scottish & Newcastle has today again rejected a move from brewing giants Heineken and Carlsberg to acquire, and subsequently divide its business operation, despite the significant improvement in their offer from first time around.

The UK’s largest independent brewery rejected outright the bid, valued at 750p per share for the assets and brands of the company as launched by a joint approach from Heineken and Carlsberg. Speaking today on the bid the company were quick to emphasise the weakness of the offer.

Scottish & Newcastle has a global business with notable brands ranging from Fosters to Newcastle Brown Ale, as well as the incredibly valuable, strong growth Baltika brand. The company have accused the brewing giants of trying to steal their business below its true value in light of recent depressions in share value.

The value of the bid was in excess of £9.5 billion reflecting a current share price per share, which was described by Heineken as a more than attractive offer for the last remaining independent UK brewery with substantial market share and target reach.

Much of the competition surrounding Scottish & Newcastle surrounds the company’s key strategic holding in Russian brewery giant Baltika indirectly through a subsidiary holding company. With a significant market share in the lucrative Russian and eastern European beverage industry.

Scottish & Newcastle have suggested that whilst they may not be adverse to the possibility of selling to the brewing consortium, they would require a substantially improved offer to reflect current and potential company value. Whilst it has expressed concern over the planned break up of its brand following any takeover, it is thought that Heineken and Carlsberg may not be too far from offering an adequate bid.

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