The consortium of Carlsberg and Heineken has succeeded in its £7.8 million (US$15.3 billion) bid to buy the UK's last national brewer, Scottish & Newcastle (S&N).
The 800p a share bid was announced early on January 25. The deal means the Danish brewer gets all of the Baltic Beverage Holdings (BBH), which was a joint venture with S&N, plus Kronenbourg, the French lager brand and brewery and S&N's Greek, Chinese and Vietnamese interests. The Dutch brewing giant acquires S&N's UK brewing interest which includes brands such as Foster's (in Europe), Strongbow cider, John Smith's Bitter and Newcastle Brown Ale along with operations in Portugal, Ireland, Finland, Belgium, US and Indian operations.
The BBH business is widely regarded as the jewel in the crown. It encompasses 19 breweries, 10 in Russia, four in the Baltic countries, three in the Ukraine, one in Kazakhstan and one Uzbekistian and has the Baltika brand - the third largest beer brand in Europe.
The deal, subject to the approval of the European Commission and other competition bodies, is expected to be completed by the second quarter of this year.
Carlsberg claims the deal is "transformational" and makes it the "world's fastest-growing global brewer". While Heineken is a successful global premium brand, it has underperformed in the UK. It is now Britain's largest brewer with three breweries and 3,300 staff.