Brew Story:The Deal is Sealed

Finally Scottish & NewCastle owner of Foster’s lager have it their way. The Cash bid of 800 pence a share totalling to 7.8 billion pounds has been agreed to jointly by Carlsberg and rival Heineken.

The cost of the deal will be split 54-46 (Carlsberg taking up the major cost).Under the deal Carlsberg will take over the Eastern European Operations , while the British,Belgium, US and Indian businesses will be taken over by Heineken.The deal has been 'brewing' for long time with almost 3 offers from the team being rejected by S&N.

The deal is expected to be completed by the 2nd quarter of 2008 and seems to be a positive note for the brewery industry as they look to cut costs at a time when the input price for malting barley and aluminum cans has risen .The deal will be managed by Lehman Brothers & Credit Suisse on the Buy Side.Rothschild, UBS and Deutsche Bank are advising S&N.