Shares of Carlsberg (CARL-B) are down 8% after the Danish beer giant’s $3.90 billion U.S. takeover bid for British soft drink maker Britvic (BVIC) was rejected.
The current decline is the biggest one-day drop in Carlsberg’s share price since March 2020 when the Covid-19 pandemic struck and its stock fell 9%.
In contrast, the stock of Britvic is up 11% on news that it has rebuffed Carlsberg’s acquisition.
In a news release, Britvic said Carlsberg’s offer “significantly undervalues” the company. This was Carlsberg’s second run at Britvic after a previous takeover offer was also declined.
For its part, Carlsberg said it will reconsider its position following the second rejection from Britvic.
Carlsberg has until July 19 to make another offer for Britvic or walk away. The brewer has been trying to grow beyond its core portfolio of beers.
Carlsberg also sells apple cider and hard seltzer but has said that it also wants to expand into the soft drink market.
Britvic makes soft drinks such as Robinsons squash and Tango in the United Kingdom and has the bottling rights in England for global soft drink giant PepsiCo (PEP), which Carlsberg likes.
Carlsberg’s stock has now declined 18% over the last 12 months to trade at 871.60 Danish Krone ($125 U.S.) per share.
