Carlsberg shares were set for their biggest one-day drop in more than four years on Friday after British soft drinks maker Britvic said it had rejected a 3.11 billion pound ($3.9 billion) takeover bid from Danish brewer Carlsberg.
Carlsberg shares fell 8.7% as of 09:04 a.m. London time, according to LSEG data. This is the company’s largest single-day share price drop since March 12, 2020, when the stock price fell 8.77%.
Britvic shares surged 12.5% on the same news.
Earlier in the meeting, Brittwich announced On June 17, the company rejected a modified cash offer from Carlsberg to acquire the British soft drinks maker for 1,250 pence per share. The company said the proposal “significantly undervalues Britvic and its current and future prospects”. It is Carlsberg’s second bid after an offer of 1,200 pence per Britvic share made on June 6 was also rejected.
Carlsberg confirmed it rejected its second proposal, saying the proposal “represents a compelling opportunity for Britvic shareholders to realize their investment in full in cash at an attractive valuation.” The Danish brewer said it would consider its position.
It noted that the potential transaction is consistent with the company’s long term growth strategy The plans were outlined in February this year – with a key point being the expansion of its core portfolio of lagers, lagers and ales.
Britvic is the owner of major UK brands Robinsons Pumpkin and soft drink Tango, and also holds the exclusive 20-year UK licensed bottling rights for US food and drink giant PepsiCo’s carbonated brands. According to the agreement signed in October 2020.
This breaking news story is being updated.
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