On Monday, Carlsberg announced that PepsiCo has agreed to waive the change of control clause in the bottling arrangement with Britvic, potentially clearing the way for the Danish brewer to bid for the UK company.
This move could pave the way for Carlsberg to increase its offer for the UK soft drinks manufacturer Britvic, which has already rejected two approaches from the Danish company.
Carlsberg stated, "The waiver will become effective if Carlsberg acquires Britvic and gains the recommendation of Britvic's board." Carlsberg bottles Pepsi beverages in some markets.
Carlsberg is still reviewing its position and stated in a release that it cannot yet confirm whether it will make any offer.
In 2020, Britvic signed a 20-year franchise bottling agreement to bottle PepsiCo beverages such as Pepsi, 7UP and Mountain Dew in the UK.
The change of control clause is a contractual term that offers greater protection to the parties of the agreement when there is a transfer of holding.
