(Reuters) – Carlsberg said on Monday PepsiCo has agreed to waive a change of control clause in its bottling arrangements with Britvic, potentially removing a hurdle from the Danish brewer’s path to bid for the British company.
The move could pave the way for Carlsberg to raise its bid for British soft drinks maker Britvic, which has rejected two approaches from the Danish firm.
“This waiver will come into effect should an acquisition of Britvic by Carlsberg, which has the recommendation of Britvic’s board, proceed to completion,” Carlsberg, which bottles Pepsi drinks in some markets, said.
Carlsberg is still considering its position and said in a statement there can be no certainty that any offer will be made.
Britvic in 2020 signed a 20-year franchise bottling agreement for PepsiCo drinks such as Pepsi, 7UP and Mountain Dew, in Britain.
A change in control clause is a contractual provision which gives a party to an agreement enhanced protection if the controlling shareholding of the other party is transferred.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee)
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