Among the key news on UK stocks, Britvic PLC (GB:BVIC) announced that it has turned down the takeover offer from Danish brewery company Carlsberg A/S (DE:CBGC) for £3.11 billion. The company asserted that the offer price undervalues both the company and its future potential. After the announcement, Britvic shares gained 8% at the time of writing today. Meanwhile, Carlsberg shares listed in Denmark fell by over 7%.
Britvic boasts a portfolio of 39 brands sold in over 100 countries globally. Its brand lineup includes well-known names such as Tango, Gatorade, Robinsons, Mountain Dew, and 7UP among others.
Britvic Says No to Carlsberg
Earlier this month, Carlsberg made an offer of 1,200p per share, which Britvic turned down. Subsequently, Carlsberg increased its all-cash bid to 1,250p per share, only to face rejection for the second time. Moving forward, Carlsberg has time until July 19 to come up with a formal bid or completely withdraw as per UK takeover rules.
With this acquisition, Carlsberg aims to broaden its portfolio outside the traditional beer category amid the growing consumer demand for beverages like ready-to-drink cocktails, cider, and lemonades.
Britvic further stated that there is no guarantee that a firm offer will be made for the company.
Last month, Britvic released its half-yearly results for FY24, achieving revenue and profit growth. For the first half, revenues grew by 11.2% to £880.3 million, while adjusted EBIT increased by 17.7% year-over-year. Profit after tax rose by 10.1% to £59.9 million. Additionally, the company’s robust consumer demand for its brands drove a 4.4% increase in volume during the first half.
Are Britvic Shares a Good Buy?
According to TipRanks, BVIC stock has received a Moderate Buy consensus rating from eight analysts. It includes three Buy and five Hold recommendations. The Britvic share price forecast is 1,014p, which is 6.2% below the current level.
