Soft drinks maker Britvic has agreed to a sweetened takeover bid of £3.28 billion ($4.2 billion) from Carlsberg, the companies announced Monday.

The deal offers 1,290 pence per share for Britvic, with a small dividend bringing the total to 1,315 pence per share for shareholders.

In June, Britvic had rejected a previous cash offer from Carlsberg of 1,250 pence per share, citing undervaluation of the company’s current and future prospects. Carlsberg’s initial offer in early June was even lower at 1,200 pence per share.

Ian Durant, Britvic’s non-executive chair, expressed optimism about the proposed deal, highlighting the creation of an expanded international group well-positioned to capitalize on growth opportunities in various beverage sectors. Durant also underscored the strategic value of Carlsberg’s partnership with PepsiCo, enhancing the combined group’s market position.

Carlsberg CEO Jacob Aarup-Andersen echoed these sentiments, emphasizing the synergy between Britvic’s premium soft drinks portfolio and Carlsberg’s robust beer offerings and distribution capabilities across the UK and Western Europe.

Central to the agreement is Britvic’s role as a key bottler and distributor of PepsiCo brands in the UK and Ireland. Earlier this year, Carlsberg and PepsiCo waived a contractual “change of control clause,” facilitating the transaction.