Carlsberg AS said it’s weighing its options after Britvic plc rejected unsolicited takeover bids that valued the UK soft-drink maker at as much as £3.1 billion (US$3.9 billion or RM18.46 billion).

The Britvic board turned down a proposal worth 1,250 pence a share from the Danish brewer earlier this week, following a previous offer at 1,200 pence, according to a statement on Friday. 

Carlsberg said in a separate statement that its interest in Britvic is aligned with its strategy announced in February, which includes expanding its portfolio beyond beer. Brands such as Somersby ciders and Garage hard seltzers account for just 2% of its volumes.

“Big Beer” has been grappling with a long-term decline in demand, as drinkers switch to spirits or cut down on alcohol consumption. Carlsberg is also looking for new sources of growth after Russia seized its assets in that country following its invasion of Ukraine.

Britvic is the UK bottler for Pepsi, a relationship that Carlsberg already has in markets including Norway, Switzerland, Sweden and Cambodia. Carlsberg and Britvic also share some business partners and customers in bottling, canning and distribution, creating some degree of overlap.

The Danish brewer said its latest proposal was worth 29% more than Britvic’s closing price on Wednesday, before speculation about possible bids emerged. The deal would expand Carlsberg’s footprint in the UK, where it is the fourth-largest brewer and has a joint brewing venture with Marston’s plc.

However, analysts at Jefferies said Carlsberg still lacks scale in the difficult UK market. Goodbody analysts said the offer looked “highly opportunistic” given Britvic’s recent performance and suggested other potential bidders could include Heineken or AB InBev, who have been looking to expand beyond beer. 

Peel Hunt said that, at first glance, the offer looked like a “skinny premium” to Thursday’s price before it spiked, and that a bid would need to be at around a 40% premium to have a chance.

Britvic said the offer significantly undervalued the company and its prospects. In its latest results, for the six months to March 31, Britvic reported a 4.4% increase in sales volumes, along with adjusted earnings before interest and taxes of up 17.7%, partly due to strong sales of Pepsi MAX and its Fruit Shoot drink. 

A takeover of Britvic would mark the latest in a string of UK-focused companies to be acquired by foreign buyers amid concern over the future of the UK’s capital markets. London-listed Hotel Chocolat agreed to a £534 million takeover by US confectionery producer Mars last year. 

Britvic shares surged 14% early on Friday in London, trading at 1,157 pence. Carlsberg traded 5% lower in Copenhagen.

Britvic’s brands include J2O, widely sold in British pubs, and Robinson’s. 

The company has previously attracted takeover attention, fending off an approach from UK rival AG Barr plc about 11 years ago and earlier drawing interest from PepsiCo Inc.  

  - Bloomberg