By Elena Vardon

Carlsberg said PepsiCo has agreed to waive the change of control clause in the bottling arrangements it has with Britvic, days after the U.K. soft-drinks maker rejected an improved $3.9 billion takeover offer by the Danish brewer.

This waiver will come into effect if Carlsberg buys Britvic, the group said on Monday.

The brewer--which is considering its position and next steps--has the recommendation of Britvic's board for a deal, it added. It has until July 19 to make a formal offer or walk away from the deal under U.K. takeover panel rules.

Britvic has a broad soft-drink portfolio and a franchise-bottling agreement with PepsiCo in the U.K. for the production, distribution and sales of its carbonated drink brands like Pepsi, 7UP and Mountain Dew. As part of its new strategy, Carlsberg seeks to expand in the non-alcoholic beverage market and reduce its reliance on beer sales.

Write to Elena Vardon at

(END) Dow Jones Newswires

06-24-24 0304ET