Having been smoked out on Markets Live, Carlsberg and Heineken have formally confirmed their interest in acquiring Britain’s Scottish & Newcastle. Here’s the key par from the statement:
Carlsberg and Heineken confirm that they are in discussions regarding the formation of a consortium to make an offer for the entire issued share capital of Scottish & Newcastle. An offer, if made, is likely to be in cash. It is currently intended that Carlsberg will ultimately acquire Scottish & Newcastle’s interest in BBH, France and Greece and that Heineken will ultimately assume control of Scottish & Newcastle’s business in the UK and other European markets.
We might add that no formal approach has been made to S&N, but it’s a fair guess that informal discussions have been intensive and extensive.
Given that this is a break up proposal, those wanting to understand the dynamics at play here might like to read (or re-read) all our coverage of Project Spice, back in April. This was the strikingly similar plan to break up S&N hatched by SAB Miller and Diageo.
Here’s the overview post on FT Alphaville, here’s SAB’s strategic thinking, here’s the Diageo side of the deal, and here’s how SAB saw other rivals responding in relation to S&N.
Within days of putative bid plan leaking, Carlsberg telegraphed its corporate intentions, announcing the relaxation of the rules governing the Carlsberg Foundation and its holding of Carlsberg capital. Here are the details.