S&N Looks To Buyout Carlsberg’s BBH Holding

Independent brewery group Scottish & Newcastle has today said it could provide shareholders with an additional £100 million annually if it bought out rival Carlsberg’s stake in established Russian beverage company BBH, in the latest twist in the long-running saga over the future of the company.

The announcement came following a submitted referral to an arbitration board following much debate over whether Scottish & Newcastle’s proposed bid to acquire Carlsberg’s 50% stake in the Russian company would be allowed to proceed, and is but the latest jibe in the running fued between the two major players in the brewery industry.

Scottish & Newcastle, which owns Fosters, John Smiths and several other notable drinks brands, was first in correspondence with Carlsberg when Carlsberg along with their competitors Heinekenn launched a consortium takeover bid for the large independent brewery.

However it appeard as though the deal was not meant to be, with Scottish & Newcastle flat-out rejecting the 750p per share approach made by the consortium of breweries as too low and “unacceptable”. The issue has been referred to the Takeover Panel who set a date of 21 January on whether or not Carlsberg and Heinekenn can be forced to “put up or shut up”, effectively making them either play their cards or leave the prospect of a takeover deal altogether.

The submission to an arbitrator in Sweden regards a clause within the BBH equity sale agreement which is triggered following the rejected bid approach from Carlsberg, which effectively provides that the other party must surrender their stake for fair market value.

It remains to be seen whether the arbitrator will rule favourably and whether or not Carlsberg and Heinekenn will finally make their next approach within the deadline set.

Story link: S&N Looks To Buyout Carlsberg’s BBH Holding