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| Brewer S&N agrees £7.8bn takeover | |
| (20 minutes later) | |
| UK brewer Scottish & Newcastle (S&N) has agreed to be bought by Heineken and Carlsberg for £7.8bn ($15.3bn). | |
| S&N started talks with Carlsberg and Heineken over the 800 pence-per-share bid proposal last week, having rejected three previous offers. | S&N started talks with Carlsberg and Heineken over the 800 pence-per-share bid proposal last week, having rejected three previous offers. |
| The company, the UK's largest brewer, makes Newcastle Brown Ale, Foster's and Kronenbourg 1664. | The company, the UK's largest brewer, makes Newcastle Brown Ale, Foster's and Kronenbourg 1664. |
| S&N employs about 3,300 staff in the UK, with breweries in Manchester, Reading, Dunston and Tadcaster. | S&N employs about 3,300 staff in the UK, with breweries in Manchester, Reading, Dunston and Tadcaster. |
| 'Transformational' | 'Transformational' |
| "The S&N board believes that the consortium's offer delivers a fair value for S&N, reflecting its growth prospects, and will be recommending that shareholders accept," S&N said. | "The S&N board believes that the consortium's offer delivers a fair value for S&N, reflecting its growth prospects, and will be recommending that shareholders accept," S&N said. |
| S&N BREAK-UP* Heineken to own S&N's UK operations including Strongbow cider, John Smith's beer, Newcastle Brown Ale, Foster'sAcquisition of S&N's operations in Portugal, Ireland, Finland and BelgiumCarlsberg to acquire BBH, including its Baltika brandCarlsberg to expand its presence in France and Greece Carlsberg to expand its presence in Asia, notably in Vietnam and China *The deal still requires competition approval | S&N BREAK-UP* Heineken to own S&N's UK operations including Strongbow cider, John Smith's beer, Newcastle Brown Ale, Foster'sAcquisition of S&N's operations in Portugal, Ireland, Finland and BelgiumCarlsberg to acquire BBH, including its Baltika brandCarlsberg to expand its presence in France and Greece Carlsberg to expand its presence in Asia, notably in Vietnam and China *The deal still requires competition approval |
| Heineken said it would achieve savings of £120m annually, new distribution in the UK and access to the UK's fast-growing cider market, as well as access to developing markets. | Heineken said it would achieve savings of £120m annually, new distribution in the UK and access to the UK's fast-growing cider market, as well as access to developing markets. |
| The break-up plan means Heineken will acquire S&N's British operations, including Strongbow cider and John Smith's beer. | The break-up plan means Heineken will acquire S&N's British operations, including Strongbow cider and John Smith's beer. |
| Carlsberg said the benefits of the deal included full ownership of BBH - the Russian-based joint venture between it and S&N - plus exposure to growth markets and cost savings. | Carlsberg said the benefits of the deal included full ownership of BBH - the Russian-based joint venture between it and S&N - plus exposure to growth markets and cost savings. |
| "For Carlsberg, it is a transformational transaction, which will deliver a major increase in its operational scale and long term growth prospects," said the firm's chief executive Jorgen Buhl Rasmussen. | "For Carlsberg, it is a transformational transaction, which will deliver a major increase in its operational scale and long term growth prospects," said the firm's chief executive Jorgen Buhl Rasmussen. |
| "In a single step, we have created the world's fastest-growing global brewer." | "In a single step, we have created the world's fastest-growing global brewer." |
| "We now have full control of our destiny in Russia and other BBH territories and I am truly excited about the new opportunities this will present to us," he added. | "We now have full control of our destiny in Russia and other BBH territories and I am truly excited about the new opportunities this will present to us," he added. |
| Ownership of BBH, which owns Baltika beer, had led to a row after S&N said Carlsberg's role in the takeover approach had broken the joint-venture agreement. | Ownership of BBH, which owns Baltika beer, had led to a row after S&N said Carlsberg's role in the takeover approach had broken the joint-venture agreement. |
| Pension | Pension |
| S&N said guarantees from Heineken would be put in place regarding the company's UK pension scheme. | S&N said guarantees from Heineken would be put in place regarding the company's UK pension scheme. |
| "As part of the agreement, Heineken will also accelerate the deficit payments previously agreed with S&N, with an injection shortly after closing £50m into the plan," the firm said. | "As part of the agreement, Heineken will also accelerate the deficit payments previously agreed with S&N, with an injection shortly after closing £50m into the plan," the firm said. |
| The deal still requires approval by the European Commission as well as other competition bodies and is tipped to be completed by the second quarter. | The deal still requires approval by the European Commission as well as other competition bodies and is tipped to be completed by the second quarter. |