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UK soft drink manufacturer Britvic has rejected a $3.95 billion takeover bid from Danish brewer Carlsberg.

The Britvic board turned down a proposal worth 1,250 pence a share from the beer giant last week (11 June), following a previous offer (7 June) at 1,200 pence.

The proposal positioned Britvic at an implied enterprise value multiple of 13.1x Britvic's adjusted EBITDA of £302 million for the twelve-month period ended 31 March 2024, totalling at $3.95 billion.

Carlsberg said that its interest in Britvic aligns with its strategy announced in February, which includes expanding its portfolio beyond beer, as it would offer the Danish brewer the opportunity to expand its drinks bottling in Britain.

In a statement, Carlsberg said that it “believes that the potential transaction would enable it to capture appealing long-term growth opportunities from Britvic’s comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record.”

"The board together with its advisers carefully considered the second proposal and concluded that it significantly undervalues Britvic and its current and future prospects," Britvic told its shareholders. "Accordingly, the board unanimously rejected the second proposal on 17 June 2024.”

Britvic owns brands such as Tango, Robinsons and J2O, and is the UK bottler for Pepsi – a relationship that Carlsberg already has in markets including Norway, Sweden, Switzerland, Cambodia and Laos. Carlsberg and Britvic also share some business partners in bottling, canning and distribution.

Carlsberg said it was considering its position after Britvic rejected its second bid.

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