Zhitong Finance learned that the world's fourth-largest brewing group, Carlsberg (CABGY.US), agreed to buy British soft drink manufacturer Britvic Plc at a price of 3.3 billion pounds (4.2 billion US dollars). The Danish beer maker's offer was 1,315 pence per share as it sought to expand its business beyond the UK and beer. Britvic's board of directors backed the deal, with a 36% premium over the share price before the intent to buy was disclosed. Carlsberg had previously offered two bids of 1,200p and 1,250p per share, both of which were rejected by Britvic's board of directors.

Britvic's history dates back to the 1930s. Today, it's a global organization with over 35 brands, including J2O and Robinsons, selling in over 100 countries. Jefferies analysts said the deal was low-risk, financially attractive, and helpful to one of Carlsberg's toughest markets to expand.

Before Carlsberg resubmitted the takeover offer, PepsiCo (PEP.US), which has bottling business with both companies, agreed to relinquish the change of control clause in the contract with Britvic — a clause that could have disrupted the deal. Britvic, which produces brands such as Fruit Shoot and J2O, is PepsiCo's bottler in the UK. Carlsberg said that if the deal continues, the exemption with PepsiCo will take effect. Carlsberg has established bottling partnerships with PepsiCo in five countries, including Norway and Sweden.

Big brewers are facing a long-term decline in demand as drinkers switch to spirits or choose to drink less alcohol. Carlsberg said interest in Britvic is in line with its strategy announced in February, which includes expanding beyond beer. Brands such as Somersby Cider and Garage Strong Soda account for 2% of its sales. It intends to establish a beverage company called Carlsberg Britvic in the UK. The deal also expanded Carlsberg's influence in Western Europe. The company announced on Monday that it will acquire its British brewing partnership with bar chain Marston's Plc (Marston's Plc).

Britvic is the latest British company to be acquired by a foreign buyer due to concerns about the future of the UK capital market. Last year, London-listed Hotel Chocolat Group Plc agreed to be bought by American candy manufacturer Mars for £0.534 billion.