S&N shareholders in takeover vote

The takeover battle for S&N started last November

Shareholders of Scottish & Newcastle (S&N) are due to meet on Monday to call time on the UK's largest brewer.

The shareholders are set to gather in Edinburgh to vote on whether to accept a £7.8bn takeover of the company by European rivals Heineken and Carlsberg.

Analysts say a vote in favour is all but a formality, with the deal due to be completed by the end of April.

Heineken and Carlsberg plan to split S&N - owner of Fosters, John Smith's and Kronenbourg 1664 - between them.

Key Russian unit

Netherlands-based Heineken will take over S&N's UK operations, while Danish Carlsberg will assume control of the majority of S&N's overseas businesses.

PLANNED S&N BREAK-UP Heineken to own S&N's UK operations including Strongbow cider, John Smith's beer, Newcastle Brown Ale and Foster's Heineken to acquire S&N's operations in Portugal, Ireland, Finland and Belgium Carlsberg to take full control of BBH, which includes the Baltika beer brand Carlsberg to acquire S&N's assets in France and Greece Carlsberg to acquire S&N's assets in Asia, notably in Vietnam and China

Carlsberg will also gain full control over its existing Russian joint venture with S&N - Baltic Beerage Holdings (BBH).

Analysts say this lucrative business unit - and Carlsberg's desire to gain full control of it - were a key factor behind the takeover.

Heineken and Carlsberg launched their hostile takeover bid for S&N at the end of last year.

S&N's board rejected their initial bids of 720 pence and 750p per share, before accepting 800p per share at the end of January.

Two weeks later, S&N announced plans to close its Reading brewery by 2010, with the potential loss of 362 jobs.

It is unknown whether Heineken will stick to this decision after the takeover.

S&N currently employs 3,300 people in the UK, with breweries also in Manchester, Gateshead and Tadcaster.