Carlsberg moves closer to Britvic acquisition as PepsiCo waives bottling clause

Carlsberg has announced an agreement with PepsiCo regarding its bottling arrangements with Britvic, marking a significant development in Carlsberg’s efforts to acquire the soft-drinks giant. PepsiCo has agreed to waive the change-of-control clause that would have impacted their bottling deal with Britvic if Carlsberg’s acquisition were to proceed. This clause was part of a 20-year franchise bottling agreement established in 2020. Despite this progress, Carlsberg has not yet improved its £3.1bn bid for Britvic, which was recently rejected, and stated that there is no certainty an offer will be made.

Following the announcement, Britvic shares soared to an all-time high, reflecting increased investor confidence in the potential deal. In contrast, Carlsberg’s shares experienced a slight decline. Carlsberg has until July 19 to present a new, potentially more attractive offer for Britvic. The recent bid of 1,250p per share, valuing Britvic at £3.1bn, was rejected, as was an earlier bid in June. Britvic’s board deemed these offers as significantly undervaluing the company and its future prospects.

Carlsberg’s pursuit of Britvic comes as the company reports solid revenue growth despite challenging market conditions. CEO Jacob Aarup-Andersen highlighted Carlsberg’s strong foundation and healthy financial position, emphasising plans to increase commercial investments to support growth. Britvic, under its own growth trajectory, reiterated its full-year organic operating profit forecast and launched a new quarterly share buy-back program. Both companies are focused on capturing long-term growth opportunities, but it remains to be seen if Carlsberg will succeed in its acquisition bid.