Friday 6 December 2019

C&C 'not a likely takeover target'

Peter Flanagan

DRINKS company C&C is "not likely" to be a takeover target in the short term, analysts said yesterday, even after reports that two of the world's biggest breweries are running the rule over the company.

SABMiller and Carlsberg are both said to have at least kicked the tyres on C&C, which has long been seen as set up for a sale to one of the majors since it sold its soft drinks business to Britvic five years ago.

Neither firm has made a decision to launch a formal takeover bid for the company, which has repeatedly hit new highs in the last month.

Molson Coors has also been routinely mentioned as a possible suitor for the company.

Analysts at Nomura yesterday said there was little chance of a bid materialising in the short term, claiming C&C was not a "must-do" deal.

"Molson Coors, historically seen as most likely bidder, recently bought into CE Europe, leveraged to three times net debt to EBITDA, "which would rule out further corporate activity in the short to medium term", the bank said.

By the close of trading in Dublin, C&C had risen 0.8pc to €3.60. It is up more than 25pc so far this year.

Irish Independent

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