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Carlsberg and Allied-Lyons to merge; creating a "new force" in UK brewing.

Carlsberg and Allied-Lyons to merge; creating a "new force" in UK brewing

Denmark's Carlsberg A's and Allied-Lyons PLC have agreed in principle to merge their United Kingdom brewing and wholesaling interests in a 50/50 joint venture in an effort to create a "new force in the UK beer market," the companies have announced.

The proposed company, Carlsberg-Tetley PLC, will brew and market a full portfolio of beer brands, including Tetley Bitter, one of the top bitters in Great Britain; three top lagers -- Carlsberg, Castlemaine XXXX and Skol; as well as other brands such as Tuborg, Lowenbrau and Draught Burton Ale.

According to the proposal currently on the table, the company's board will consist of four directors -- Michael Iuul and Poul Svanholm, Carlsberg; and Roy Moss and Tony Trigg, Allied-Lyons.

"The merger of Carlsberg's activities with Allied Breweries Ltd. in the joint venture company, Carlsberg-Tetley PLC, represents an important move for Carlsberg in the UK," said Poul Svanholm, Carlsberg A's president. "The perfect fit between Tetley Bitter and Carlsberg's world-famous lager, together with the other flagship brands of both companies, enables the company to establish a prime position in a market which is becoming increasingly competitive."

"We are now very well placed to compete in the coming years with a joint brand portfolio whose strength and depth will enable it to gain share in the growing free trade," commented Michael Jackamann, Allied-Lyons chairman. "This is excellent news for both parties."

Implementation of the proposal is subject to further negotiation, documentation, tax and regulatory clearances. The new venture is planned to commence operations in March 1992.
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Publication:Modern Brewery Age
Date:Oct 28, 1991
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