Robinsons maker Britvic rejects £3.1bn bid from Carlsberg

UK soft-drink maker Britvic has rejected a £3.1bn bid from Carlsberg, saying the Danish brewer was “significantly” undervaluing a group whose brands include Robinsons and Fruit Shoot.

The takeover attempt marks the latest by a string of foreign companies that have sought to acquire London-listed groups this year, attracted in part by cheaper prices.

Carlsberg made an initial bid of 1,200 pence per share earlier this month, before sweetening its all-cash proposal to 1,250p, which London-listed Britvic rejected on June 17.

Carlsberg now has until July 19 to make a firm bid or walk away under UK takeover rules. The brewer of Kronenbourg and Tuborg said it was currently weighing its position after its most recent offer was dismissed.

An acquisition of Britvic would offer Carlsberg the opportunity to expand its drinks bottling in Britain. As well as producing its own brands, Britvic is PepsiCo’s bottler in the UK. Carlsberg is PepsiCo’s bottler in Norway, Sweden, Switzerland, Cambodia and Laos.

The acquisition of Britvic implied “a significant extension of the partnership with Pepsi,” said Jefferies analyst Edward Mundy. It would also offer the brewer a wider platform in the UK, where Carlsberg is the fourth largest brewer and has a joint venture with pub group Marston’s.

“However the business still lacks scale in what is a difficult UK market,” he added.

The latest bid represented 29 per cent premium to Britvic’s share price on Wednesday June 19, the day before “press speculation” appeared about a possible bid, Carlsberg said in a statement on Friday.

“Carlsberg believes that the proposal represents a compelling opportunity for Britvic shareholders to realise their investment in full in cash at an attractive valuation,” the brewer added.

On Thursday, shares of Britvic surged before the talks were officially disclosed. The stock continued to gain on Friday, rising 15 per cent to 1,167p in early trading.

Britvic said: “The board together with its advisers carefully considered the second proposal, and concluded that it significantly undervalues Britvic, and its current and future prospects”.

According to Britvic’s website, the company’s history dates back to the 1930s, when a chemist in Chelmsford, Essex, began producing soft drinks.