£7.8bn offer wins over S&N

The UK's largest brewer, Scottish & Newcastle (S&N), has accepted a £7.8 billion takeover deal from Carlsberg and Heineken.

After rejecting three lower offers from the Carlsberg and Heineken consortium, S&N accepted a recommended bid of 800p per share, a 26 per cent premium from the consortium's original proposal last October.

"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," said chairman Sir Brian Stewart.

"This is a truly transformational transaction for Carlsberg," said Jorgen Rasmussen, chief executive for the Denmark-based brewer.

"We have created the world's fastest growing global brewer."

Heineken and Carlsberg estimated £120 million in annual synergies resulting from the deal.

The deal will also give Carlsberg full control of their Russian-based joint venture, Baltic Beverages Holdings (BBH) with S&N, as well as create "significant opportunities in profitable markets", said Heineken's chief executive, Jean-Francois van Boxmeer.

Investors seem to be happy about the deal this morning. S&N, maker of Kronenbourg 1664 and Strongbow cider, has seen its share price add on more than two per cent to 782p in early trading.