PepsiCo to waive clause in bottling deal as Carlsberg eyes Britvic Bid 

UK – Carlsberg has announced that PepsiCo has agreed to waive a change of control clause in its bottling agreement with Britvic, a UK-based soft drink manufacturer.  

This development potentially paves the way for Carlsberg to enhance its bid for Britvic after the British firm rejected a US$3.9 billion offer from the Danish brewer. 

Carlsberg stated, “This waiver will come into effect should an acquisition of Britvic by Carlsberg, which has the recommendation of Britvic’s board, proceed to completion.” 

Earlier, Britvic turned down a US$3.95 billion takeover bid from Carlsberg, following an earlier offer of US$3.8 billion.

The UK-based soft-drinks supplier asserted that the second proposal “significantly undervalues Britvic, and its current and future prospects.” 

Carlsberg’s interest in Britvic aligns with its strategic objective announced in February, which focuses on expanding its portfolio beyond beer.  

The acquisition will allow Carlsberg to extend its drinks bottling operations in Britain.  

In a statement, Carlsberg noted, “The potential transaction will enable us to capture appealing long-term growth opportunities from Britvic’s comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record.” 

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

Accordingly, the board unanimously rejected the second proposal on 17 June 2024.

Britvic, which owns popular brands such as Tango, Robinsons, and J2O, is the UK bottler for Pepsi. Carlsberg and Britvic share business partners in bottling, canning, and distribution. 

In the first half of fiscal year 2024, Britvic reported a 10.9 percent rise in revenue to £880.3 million (US$1.11 billion) for the six months ending in March, driven by a favorable price/mix but also achieving volume growth.  

The company also recorded a 15.3 percent increase in EBIT to £93.1 million and a 10.1 percent rise in profit after tax to £59.9 million. 

With 68 percent of its revenue derived from its operations in Great Britain, Britvic also maintains significant operations in France and Brazil.