Carlsberg-Heineken to acquire S&N for $15.4 billion

25 January 2008

Mumabi: UK beer maker Scottish & Newcastle has accepted a take-over offer of 7.8 billion pound ($15.4 billion) by a consortium of Danish and Dutch brewers Carlsberg and Heineken. The UK Takeover Panel yesterday agreed to extend the bid deadline for a second time, until midday today, after moving the date to January 24 from the original timeframe of January 21.

Edinburgh-based S&N is the UK's largest brewer, with brands such as Newcastle Brown Ale and Foster's, and is the world's seventh largest brewer by sales volume.

It holds a 37.5 per cent stake in Vijay Mallya's United Breweries, which will be acquired by Heineken.

"While the UB Group has had an excellent and productive relationship with S&N Plc during the period of association, we welcome the fact that Heineken will be associated and be a potential shareholder of United Breweries on terms that are yet to be agreed," chairman Mallya said in a statement.

Mallya said there was great potential for combining strengths of the two companies to tap the Indian beer market.

Carlsberg and Heineken had proposed a 720p-acquisition offer, in October (See: Brewers Carlsberg, Heineken gang up against Scottish & Newcastle; S&N taking evasive action), which the UK brewer rejected as being "unsolicited and unwelcome"..  They raised their bid in November to 750p (See: Scottish & Newcastle rejects improved bid from Carlsberg and Heineken), prior to the current increase.