C&C to buy Tennent's

Drinks group C&C is to acquire the Irish, Northern Irish and Scottish businesses of Anheuser-Busch InBev (ABI), including the Tennent’s brands, for £180m (€205m), the company announced this morning.

In a trading statement the company, brewers of the Magners and Bulmers cider brands, said the acquisition will be financed from a combination of the group’s own cash resources and existing bank facilities.

The purchase will include the Tennent's lager brand, the Wellpark Brewery in Glasgow and distribution rights to certain ABI brands in Ireland, the North and Scotland - including Stella Artois and Beck’s - as part of a strategic partnership with the world’s largest brewer.

Tennent’s Lager is Scotland’s leading lager accounting for 55% of volumes of lager sold to the Scottish on-trade and around 30% of off-trade.

"The Board of C&C believes that the Acquisition represents a logical platform to develop its existing business, with potential to increase the position of Magners outside its core market and providing portfolio diversification in Ireland," the statement said.

The acquisition is subject to shareholder approval.