Britvic rejects $3.9 billion takeover offer, causing Carlsberg to slide 9%.

• By the close, Britvic's shares surged by 9%, while Carlsberg's shares fell by the same percentage.
• Britvic shareholders will not receive a full cash payout for their investment in Carlsberg, as the company rejected its second proposal.
• The Danish brewer said it will be considering its position.

On Friday, Carlsberg's shares plummeted after the British soft drinks company announced that it had rejected the Danish brewer's £3.11 billion ($3.9 billion) takeover offer.

By the close, shares of Carlsberg were down 9%, while Britvic surged by the same amount. Earlier in the session, Britvic announced that it had rejected an improved cash takeover bid from Carlsberg on June 17, which offered 1,250 pence per share of the British soft drinks maker. The company stated that the proposal significantly undervalued Britvic and its current and future prospects. This was Carlsberg's second bid, after its June 6 offer price of 1,200 pence per Britvic share was also declined.

Carlsberg rejected its second proposal, which it deemed a "compelling opportunity for Britvic shareholders to realize their investment in full in cash at an attractive valuation." The Danish brewer stated that it will be evaluating its position.

Until July 19, Carlsberg must make a definitive offer or abandon the deal.

The brewer observed that the proposed transaction aligned with the company's long-term growth strategy, which involves expanding beyond its core beer, lager, and ale offerings. As of February, the company's "beyond beer" product portfolio, which includes Somersby apple cider and Garage hard seltzer, accounted for only 2% of its total volumes. In contrast, Tuborg, the company's largest brand, accounts for approximately 15% of total volumes, with Carlsberg beer making up 10%.

PepsiCo has granted Britvic exclusive 20-year bottling rights in Britain for its carbonated brands, while Carlsberg holds a similar relationship with PepsiCo in several other countries, including Norway, Sweden, Switzerland, Cambodia, Laos, Denmark, and Finland, and is also the bottler of its rival in those countries.