S&N Deal Reaches 11th Hour

The potential takeover of independent brewery group Scottish & Newcastle was given a lifeline today after the Takeover Panel granted a 24 hour extention to the bidders to finalise their next proposal following the commencement of talks earlier in the week regarding a potential 800p per share bid.

The takeover interest from brewing giants Heineken and Carlsberg has been ongoing for some months, and has seen the formalisation and rejection of two previous takeover approached valued less than the current deal amidst growing media speculation over

After initial hostility, Scottish & Newcastle revitalised talks by suggesting they may be willing to listen to offers in the region of 800p per share. However with the Takeover Panel previously setting a formal deadline after a “put up or shut up” motion, the boards of directors were required to jointly appeal for an extenstion.

The brewery, which runs Foster’s and John Smith’s beverage brands, has been considered something of a hot ticket in the brewing industry in part for its substantial holding in BBH, a Russian brewing company which looks set to grow rapidly over the next few years within the Baltic beverage marketplace. However Scottish & Newcastle have been reluctant to sell up, valuing their BBH holding as a key asset and key bargaining tool for any prospective takeover bid.

The latest proposal from the Heineken and Carlsberg camp would value Scottish & Newcastle at £7.8 billion, and would see its business carved between the two major rivals giving Carlsberg a 100% stake in BBH and allowing Heineken to assume the European business of S&N.

It is thought that the parties have now agreed the financials and worked through the S&N accounts, with a view to closing out over the remaining 24 hours prior to the Takeover Panel deadline.

Story link: S&N Deal Reaches 11th Hour