Heineken to take control of S&N brands in the UK

Heineken will take over the Foster’s, Strongbow cider and Newcastle Brown Ale brands from Scottish & Newcastle, as the battle to acquire the British brewer finally comes to an end.

S&N announced that its board had decided to sell its shares in the business to Carlsberg and Heineken for 7.6bn this morning (January 25). Under the proposed deal, Carlsberg is expected to fund 56% of the purchase, with its Dutch partner paying 44%.

Carlsberg will take over S&N’s French, Greek, Chinese and Vietnamese operations with Heineken taking over its remaining businesses, across the UK and Ireland, Portugal, Finland, Belgium, the US and India.

The deal will also give Heineken access to the UK cider market, reported to be growing at 18.6%.

Following the completion of the deal, S&N’s share of Baltic Beverage Holdings (BBH) the Eastern European brewing venture with Carlsberg that has been the a key part of the long-running takeover battle will transfer to Carlsberg.

For Carlsberg, the deal will deliver a major increase in its operational scale and long-term growth prospects, resulting in the creation of the “world’s fastest growing global beer company”. In addition to gaining control of BBH, a key growth asset, Carlsberg will enhance its position in Western Europe with complementary businesses in France and Greece.

Meanwhile, it is understood that City analysts have not ruled out the possibility of a counter bid from rivals such as Anheuser-Busch or SABMIller.

Latest from Marketing Week

Tesco, M&S, Just Eat: 5 things that mattered this week and why

m&s

M&S chief outlines digital-first strategy after profits plummet Marks & Spencer (M&S) is gearing up for a digital-first future, after its revealed on Wednesday (23 May) that profits had dropped a massive 62.1% to £66.8m compared to the previous year. A day earlier, the struggling retailer confirmed it will close more than 100 stores over […]

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here