Brewers Carlsberg and Heineken confirmed today they are looking to make a bid for rival Scottish and Newcastle (S&N).

The possible deal would include the purchase of S&N's entire UK operation - including its Federation Brewery in Dunston, where Newcastle Brown Ale is made - as well as its other European interests. Carlsberg and Heineken stressed their interest is in the early stages and said an offer may not be made, but confirmed it had been eyeing the group for some time.