New takeover bid for UK brewer

UK brewer Scottish & Newcastle received a new takeover proposal today after bidders Carlsberg and Heineken topped up their offer price to £7.3bn (€10.2bn).

Edinburgh-based S&N, which traces its roots back to 1749, has previously described the heavyweights’ break-up proposals as “unsolicited and unwelcome”.

S&N was the subject of a new approach today worth 750p a share, an increase of 30p a share on a previous offer and valuing the business at £7.3bn (€10.2bn).

Danish firm Carlsberg and Dutch brewer Heineken plan to carve up S&N if they succeed in their overtures for the business. Their approach is conditional on a board recommendation and extensive due diligence.

Heineken is looking to gain S&N’s UK business and operations elsewhere in Europe. Carlsberg wants to take S&N’s stake in their 50/50 Russian joint venture BBH, as well as the firm’s operations in France and Greece.

S&N, which is best known for making Foster’s, Kronenbourg 1664 and John Smith’s, has around 3,300 staff in the UK. It has breweries in Manchester, Reading, Dunston near Newcastle, and Tadcaster, in North Yorkshire.

The company also owns the Bulmers cider mill in Hereford and has administrative staff in Edinburgh and Staines, Middlesex.

Heineken dates back to 1864 and also counts Amstel among its major international brands.

Carlsberg sells 83 million bottles of beer every day in 150 countries and has 30,000 staff.