After more than three months of negotiations, Scottish & Newcastle agreed a takeover offer from European rivals Carlsberg and Heineken.
S&N, Britain’s largest brewing company, produces Newcastle Brown and many other brands, including Foster’s and Kronenbourg 1664 beer.
Carlsberg of Denmark and Heineken will divide Scottish & Newcastle’s assets between them and share the bill, with Carlsberg taking a slightly larger part. Heineken will obtain the British business, and Carlsberg will take full control of Russia’s largest brewer, which it owned with Scottish & Newcastle.
Analyst point out that Carlsberg’s interest in the Russian market – where it and S&N shared a partnership – was a driving force behind making the deal.
The takeover will give Heineken access to Britain’s cider market, which is growing 18.6%. It will also get Scottish & Newcastle’s businesses in Ireland, Portugal, Finland, Belgium, the United States and India.