Mergers, Acquisitions and Takeovers Case Study

The S&N Takeover – The Going Gets Tough for Danish-Dutch Duo?

OR

Abstract:
Scottish and Newcastle, the biggest British brewer finally let itself be taken over jointly by the Denmark based Carlsberg and the Amsterdam based Heineken. The takeover, it was said, would have far reaching effects on the global beer market. On one hand the deal promised tremendous annual synergies for the Danish-Dutch duo, yet on the other hand there were reasons to believe that Scottish and Newcastle had been divided on unequal terms between the two. Carlsberg claimed a share in the emerging Russian market and had interests in France, Greece, Russia, China and Vietnam while Heineken claimed the mature British market, European markets, Ireland, Finland, Portugal, Belgium, the US and Indian business. The deal also ensured that Heineken and Carlsberg operated in common markets, and that could have made consumer's interest move downhill. Both Heineken and Carlsberg defended their decisions. However, the future of the alliance remained turbulent and it remained to be seen who among the two would eventually reap the benefits of the takeover.

Pedagogical Objectives:

• To get an insight into the dynamics of emerging and mature beer markets.
• To understand the rationale behind a joint takeover in the beer industry.
• To analyse how the alliance could affect the future operations of the two global brewers in common and new markets..

Keywords : Takeover, Emerging market, Stagnation, Leading brands, Bid price, Common markets, Cost savings, Market leader, Matured market, Sales mix, Competition, Eastern Europe, Deal, Consumer choice, Premium brands

Contents : 
Carlsberg – Spreading Wings Globally
Carlsberg’s Global Footprint
Carlsberg-Regional markets
Heineken – Maintaining Momentum
Snapshot of Heineken – Brands Across the Globe
Scottish and Newcastle
The Deal: Pawing the S&N Jackpot
World Beer Market – An Overview
Splitting the Global Assets – The If’s and But’s