Calling time on 250 years’ history
Mar 31 2008 by Andrew Mernin, The Journal
THE £7.8bn takeover of brewer Scottish & Newcastle is expected to move a step closer today.
Shareholders of Foster’s and Brown Ale maker Scottish & Newcastle will gather in Edinburgh this morning to call time on more than 250 years of history for the UK’s largest brewer.
Investors are set to approve the £7.8bn takeover by European giants Heineken and Carlsberg, which will herald a break-up of the business. S&N’s board finally agreed to the duo’s fourth offer for the company in January following a three-month pursuit.
After today’s approval, the deal should be given court approval in late April before a likely completion on April 28.
The company’s UK operation will pass to Dutch giant Heineken.
The firm, which employs 80 people at the former Federation Brewery site in Dunston, Gateshead, also has breweries in Manchester, Reading, and Tadcaster, in North Yorkshire, as well as owning the Bulmers cider mill in Hereford.
Heineken will gain S&N’s businesses in Portugal, Ireland, Finland and Belgium. Danish brewer Carlsberg will take on S&N’s stake in BBH, their fast-growing 50/50 joint venture in Russia and the Baltics, and the firm’s operations in France, Greece, China and Vietnam. Recent annual results for the firm – its last as an independent group – showed flat profits of £444m during 2007.
