Carlsberg, PepsiCo Agree to Waive Britvic's Change-of-Control Clause Amid Takeover Talks

By Elena Vardon

Carlsberg said PepsiCo has agreed to waive the change of control clause in the bottling arrangements it has with Britvic, days after the U.K. soft-drinks maker rejected an improved $3.9 billion takeover offer by the Danish brewer.

This waiver will come into effect if Carlsberg buys Britvic, the group said on Monday.

Carlsberg said the recommendation of Britvic's board for a potential takeover deal will be needed for PepsiCo's change-of-control clause to be waived. It has until July 19 to make a formal offer or walk away from the deal under U.K. takeover panel rules. It has until July 19 to make a formal offer or walk away from the deal under U.K. takeover panel rules.

Britvic has a broad soft-drink portfolio and a franchise-bottling agreement with PepsiCo in the U.K. for the production, distribution and sales of its carbonated drink brands like Pepsi, 7UP and Mountain Dew. As part of its new strategy, Carlsberg seeks to expand in the non-alcoholic beverage market and reduce its reliance on beer sales.

Write to Elena Vardon at elena.vardon@wsj.com

Corrections & Amplifications

This article was corrected at 0720 GMT to reflect that Carlsberg said the recommendation of Britvic's board for a potential takeover deal will be needed for PepsiCo's change-of-control clause to be waived. The original article incorrectly said that Carlsberg has the recommendation of Britvic's board.

(END) Dow Jones Newswires

June 24, 2024 03:04 ET (07:04 GMT)

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