S&N succumbs to Carlsberg/Heineken for £7.6bn

Carlsberg and Heineken have finally succeeded in their bitter battle to acquire Scottish & Newcastle (S&N).

The pair announced this morning that they had agreed terms with S&N's board to acquire the UK brewer for 800p a share, valuing S&N at £7.6bn.

Once the deal completes, subject to shareholder and regulatory approval, S&N's share of Baltic Beverage Holdings - the Eastern European brewing venture that has lain at the heart of what had developed into a bitter takeover dispute - will transfer to the Danish brewer. S&N's French, Greek, Chinese and Vietnamese operations will also move to Carlsberg.

Heineken will own S&N's remaining businesses, principally the UK and Ireland, Portuguese, Finnish, Belgian, US and Indian operations.

The divisions will be separated "as soon as possible" and at least within 12 months after completion of the acquisition, according to Carlsberg.

Speaking about the deal today, S&N chairman Sir Brian Stewart said: "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."

The successful bid follows frenetic activity yesterday as the Takeover Panel agreed to extend its already extended deadline for the parties to reach agreement.

The takeover battle had descended into bitter recrimination in recent weeks, with both sides levelling accusations at the other regarding both the value of BBH and S&N as a whole.

Jean-Francois van Boxmeer, chairman and CEO of Heineken, said: "This is a significant strategic step for Heineken. It gives us undisputed leadership in Europe and creates significant opportunities in profitable markets to grow the premium Heineken brand.

"Our proven ability to create value from mature markets coupled with the step-change in revenue growth will drive our future expansion. I look forward to welcoming the Scottish & Newcastle employees into our business and learning from their unique experience and skills."