News

Brewery takeover could be good news, says Durham University expert

(25 January 2008)

A Durham University corporate finance expert today said the announcement of a £7.8bn takeover of Scottish & Newcastle (S&N) Breweries could be good news for the future of brewing in the UK.

S&N, the UK’s largest brewer employing 3,300 people, today announced that it had agreed to the takeover by Carlsberg and Heineken. Dr Gioia Pescetto, Associate Dean and Senior Lecturer in Finance at Durham’s Business School, said: “The brewing industry is facing difficult market conditions worldwide and a global move towards industry consolidation. “Against this backdrop, S&N has done very well to push the Carlsberg-Heineken’s consortium to increase the offer four times and deliver better value to its shareholders. “The combined strength of the brands and considerable savings opportunities could also be good news for the future of brewing in the UK and job security.”