UK: Carlsberg ready to buy S&N’s stake in BBH; S&N says it’s not for sale

Carlsberg AS is ready to buy Scottish & Newcastle out of their Baltic Beverages Holding (BBH) joint venture for 30-40 bln dkr, daily Berlingske Tidende said, citing Carlsberg chairman Povl Krogsgaard-Larsen, according to AFX News Limited, September 7.

'We are ready,' Krogsgaard-Larsen said. 'We can clearly see advantages in getting 100 pct ownership of BBH. We've built up a capital reserve so we can react the day it becomes possible [to buy S&N's share of BBH].'

'Naturally there is competition between Scottish & Newcastle and Carlsberg about marketing our own brands as effectively as possible,' Krogsgaard-Larsen said. 'If we have 100 pct of BBH we can decide for ourselves how we will market our products alongside Baltika's products.'

Sources told Thomson Financial News they could not 'conceive of the possibility' of the stake in the joint venture with Carlsberg becoming available.

A spokesman for S&N responded: 'We are very happy with the relationship with Carlsberg and the joint ownership of BBH and that is and will remain the position.'

Speculation of a merger or a takeover of S&N by Carlsberg resurfaced again this week after Carlsberg announced the appointment of Joergen Buhl Rasmussen as chief executive following the departure of Nils Smedegaard Andersen who steps down on October 1.

Rasmussen, who has been Carlsberg's representative to BBH and has close links with S&N, told a news conference on his appointment: 'I see no need to make large changes. My appointment has nothing to do with a potential purchase of S&N.

Baltika is BBH's major brand, brewed in St Petersburg.

Carlsberg's strategy is to own 100 pct of all foreign subsidiaries.

07 September, 2007