Shares of Danish brewing market giant, Carlsberg (CARLB.DK) drops almost 8.5% today as British soft drinks producers Britvic has rejected worth $3.9bn (£3.1bn) takeover deal, proposed by Carlsberg Group. In the effect, shares of Britvic gained more than 10% today but erased almost half of that; investors still see higher potential that the company is still undervalued, as shareholders reject the deal. Today's session for Carlsberg is the worst since the Covid-19 crash.
- At the moment Britvic is valued at £2.7bn still almost 20% below the Carslberg's offer. Investors saw takeover potential as a chance for Carlsberg business expansion. Carlsberg valued Britvic at £12.5 per share, but Britvic argued that the proposal significantly undervalues its business and future expansion. At June 6 Britvic rejected other, £12 deal from Carlsberg and now Danish company has time to July 19 to make the another, third one offer.
- Carlsberg still wants to diversify its business by boosting products of both beer styles 'lagers and ales' as well as the non-alcoholic beverages, which gained growth momentum in recent years. Britvic is well-known from Robinsons UK brands and Tango. The company has a 20-year franchise bottling deal with PepsiCo, signed in the fall of 2020. Carlsberg has a similar deal with PepsiCo in Scandinavian countries and Switzerland, but the United Kingdom seems to be a much larger market.
- Somersby and Garage brands counted just for 2% of Carlsberg's volumes vs 15% of total volumes produced in Tuborg factory (and 10% Carlsberg beer). Carlsberg commented the last takeover offer as a compelling opportunity for Britvic shareholders but 'will be considering its position' so the new deal seems to be still possible.
Carlsberg shares (CARLB.DK, D1 interval)
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Source: xStation5
Source: xStation5
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