PepsiCo has agreed to waive the change of control clause with Britvic, which is expected to see Carlsberg present a third bid for the drinks firm.

Britvic’s deal with Pepsi gives it exclusive distribution and sales rights for brands including Pepsi Max, 7up and Lipton Iced Tea until 2040.

The clause would have allowed for Pepsi to have terminate its bottling agreement with Britvic, making the takeover of the latter less attractive to Carlsberg.

The Danish firm has previously made two offers for Britvic, the latest standing at 1,250 pence a share.

However, Britvic said it had rejected both offers, as the bids "significantly undervalued" the firm and its prospects.

Despite rejecting these bids, the firm added that it would consider “any future proposal on its merit”, with a third bid expected as early as this week.

In a statement, Carlsberg said: "Further to the speculation in the weekend press, Carlsberg confirms that it has reached agreement with PepsiCo, Inc. whereby PepsiCo has agreed to waive the change of control clause in the bottling arrangements it has with Britvic.

"This waiver will come into effect should an acquisition of Britvic by Carlsberg, which has the recommendation of Britvic’s board, proceed to completion.

"Carlsberg is considering its position. There can be no certainty that any offer will be made."

Reuters has reported that Britvic’s shares increased by as much as 10% to a record high of 1,207 pence in early trade, while Carlsberg shares dropped by 0.26%.

Investment director at AJ Bell, Russ Mould, added: "Britvic shares were in demand as the market waits for the bid situation involving Carlsberg to play out. News the Danish beer maker has agreed with PepsiCo to waive the change of control clause on the latter’s bottling arrangements with Britvic is significant.

"This is a demonstration of Carlsberg’s commitment to the deal and, given the commercial attractiveness of this bottling contract, could give it the leeway necessary to come back with a more generous offer after being rejected twice so far."

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