S&N falls at last to Carlsberg, Heineken

Scottish & Newcastle finally fell to a bid from Carlsberg and Heineken today, ending 259 years as an independent company.

At £7.6 billion, the 800p-a-share deal is far ahead of the value of the business when talks first began in October.

Carlsberg gets the 50% stake in Russian brewer BBH that it did not already own, as well as S&N's French, Greek, Chinese and Vietnamese operations.

Heineken gets the UK and Irish arms as well as small businesses in other parts of Europe.

S&N chief executive John Dunsmore is expected to walk away with £3 million, reward for a feisty defence of the company that forced the bidders to increase the offer several times.

Carlsberg chief executive Jorgen Buhl Rasmussen said: "This is a truly transformational transaction for Carlsberg. In a single step we have created the world's fastest growing brewer."

Carlsberg is particularly glad to have taken control of BBH, seen as S&N's most valuable property.

With beer sales in the UK sluggish, Heineken will have to revitalise the John Smith's and Newcastle Brown Ale brands.

Carlsberg is planning a £3 billion rights issue to funds its half of the deal. It provided most of the extra cash after the original 720p offer was declined. A counterbid from rivals such as SABMiller is possibile but bankers for Carlsberg and Heineken are likely to enter the market today to mop up shares.

With debt and pension liabilities, the deal's value nears £10 billion.