Scottish & Newcastle stock surged Wednesday after two of its European competitors said they’re considering a takeover bid. Carlsberg and Heineken said they were in talks regarding the formation of a consortium to launch a bid for the UK’s largest brewer.
The companies said that it was “currently intended that Carlsberg will ultimately acquire Scottish & Newcastle’s interest in Baltic
Beverage Holdings, France and Greece, and that Heineken will ultimately assume control of Scottish & Newcastle’s business in the UK and other European markets.”
Edinburgh-based Scottish & Newcastle’s top brands include Foster’s, Kronenbourg 1664 and Newcastle Brown Ale, while Heineken’s main brands are Heineken and Amstel and Carlsberg is known for its Carlsberg beer.
If closed the deal would further the ongoing consolidation among the world’s largest brewers. Last week Moslon Coors and SABMiller announced plans to combine their U.S. operations.