C&C could make ideal acquisition target for larger rivals, says analyst

Irish drinks group C&C would make an ideal acquisition target for larger international rivals SABMiller or Carlsberg, according to London industry analyst Phil Carroll of Shore Capital.

In a note issued yesterday in advance of C&C’s annual results today, broker Shore Capital predicted that an expected €106m pre-tax profit, delivering around 16% year-on-year growth, coupled with a growing demand for C&C’s cider and other drinks in overseas markets, might entice bids for C&C, whose global brands include Magners cider and Tennent’s lager. The Shore Capital note also cited industry reports of specific interest from both SABMiller and Carlsberg.

Mr Carroll said: “This comes as no surprise to us, given the structural growth that the premium cider market has been showing outside of Ireland, and we have long believed C&C to be a potential bid candidate.”