British brewer to be carved up by takeover

Updated 09.48 Fri Jan 25 2008
Keywords: alcohol, beer, carlsberg, heineken, scottish & newcastle, brewing, business

Scottish & Newcastle has agreed a £7.8 billion takeover that will lead to its brewing business being divided between Heineken and Carlsberg.

After four months of talks, S&N accepted Heineken and Carlsberg's fourth offer of 800p per share, ending 250 years of brewing history for the Edinburgh-based business.

"The board believes that the consortium's offer delivers a fair value for S&N" - Scottish & Newcastle

S&N chairman Sir Brian Stewart said: "The board believes that the consortium's offer delivers a fair value for S&N, reflecting its growth prospects."

Carlsberg will take on S&N's stake in BBH, a 50-50 joint venture in Russia and the Baltics, as well as the firm's operations in France, Greece, China and Vietnam.

Carlsberg said the firm "now has full control of our destiny in Russia and other BBH territories".

Dutch giant Heineken meanwhile will become the UK's leading brewer after taking on S&N's domestic business, as well as bolstering its position in several European markets.

Heineken chief executive Jean-Francois van Boxmeer said: "It gives us undisputed leadership in Europe and creates significant opportunities in profitable markets."

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