S&N eyeing deal in bid to stave off takeover

Published on Saturday 15 December 2007 19:22

BREWER Scottish & Newcastle is understood to be considering a deal with one of the companies trying to take it over.

S&N is pondering talks with Heineken to create a partnership which will give the Dutch brewer better access to British and Indian markets. In return, Heineken would pull out of its joint bid with Carlsberg to take over S&N.

With the threat of a joint bid from Carlsberg and Heineken looming, possibly as early as this week, S&N will want to argue that Heineken can get a better deal by agreeing to work together in key markets.

S&N has not made any formal approach to Heineken, but sources close to the company say that if management can fight off the joint bid, then co-operation with Heineken is a real possibility.

Under the agreement, Heineken would take S&N's UK market and India, where S&N has a joint venture with a local drinks tycoon.

S&N is in a strong position to exploit the potential in India with a 37.5% share of United Breweries, making it the market leader in the booming market.

Politicians fear that a takeover of S&N would be a blow for the Edinburgh and Scottish economy because of the possible loss of executive jobs.