PepsiCo To Waive Clause In Bottling Deal As Carlsberg Eyes Britvic Bid

By Reuters
PepsiCo To Waive Clause In Bottling Deal As Carlsberg Eyes Britvic Bid

Carlsberg said on Monday that PepsiCo has agreed to waive a clause in its bottling deal with Britvic, making the British drinks company a more attractive acquisition after a £3.11 billion bid by the brewer was rejected last week.

The move could pave the way for Carlsberg to raise its bid for soft drinks maker Britvic which has rejected two bids from the beer maker.

Britvic’s shares rose by as much as 10% to an all-time high of 1,207 pence in early trade.

Carlsberg’s stock, meanwhile, was down 0.26%.


Carlsberg said, ‘This (change of control clause) waiver will come into effect should an acquisition of Britvic by Carlsberg, which has the recommendation of Britvic’s board, proceed to completion.’


A change in control clause is a contractual provision that gives a party to an agreement enhanced protection if the controlling shareholding of the other party is transferred.

In commercial terms, it means that the party who is not subject to a change in ownership is granted the right to terminate the agreement in the event of a change of control of the other party.

In 2020, Britvic signed a 20-year franchise bottling agreement for PepsiCo drinks, such as Pepsi, 7UP and Mountain Dew, in Britain.

Carlsberg said it is still evaluating its position and there can be no certainty that any offer will be made.

The Danish brewer’s potential acquisition of Britvic would imply a significant extension of the partnership with Pepsi, according to analysts at Jeffries.


Analysts mentioned the extension in a note last week, adding that it ‘may bring the current Coca-Cola bottling agreements in Denmark and Finland under scrutiny.’

Britvic makes other non-alcoholic beverages and cocktail mixers.

In the UK, it is famous for brands such as Robinsons fruit cordial and R. White’s lemonade.

Carlsberg has until 19 July to make a formal offer to Britvic or walk away.

Read More: Britvic Rejects £3.11b Takeover Proposal From Carlsberg

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