The UK Competition and Markets Authority (CMA) and European Commission have cleared brewing giant Carlsberg’s £3.3bn ($4.2bn) acquisition of soft-drinks group Britvic.
In a joint statement, Carlsberg and Britvic confirmed that “all regulatory conditions have now been satisfied”, including clearances from the European Commission and the UK’s CMA.
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In October, the CMA launched an investigation into the merger to examine if the deal would “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
The deal, backed by Britvic in July, aims to create a single integrated beverage company in the UK, called Carlsberg Britvic.
Completion of the acquisition is pending the Court’s approval at the Sanction Court Hearing on 15 January 2025, along with the delivery of the Court Order to the Registrar of Companies and the fulfillment of remaining conditions.
If all conditions are met, the deal is expected to become effective on 16 January 2025.
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By GlobalDataA spokesperson for Carlsberg said: “We’re delighted to have received all necessary regulatory clearances and, subject to the satisfaction of the Court, we look forward to completing the transaction in January 2025.
“We believe the combination of Carlsberg and Britvic will create a highly attractive multi-beverage supplier in the UK, with an efficient supply chain and distribution network that provides our customers with a portfolio of market leading brands and world-class service.”
Carlsberg’s acquisition of Britvic follows two rejected bids by the maker of drinks such as the Robinsons squash, R White’s lemonade and J2O.
Announcing the acceptance of its third bid, Carlsberg had said it plans to “accelerate commercial and supply chain investments in Britvic, driving the future growth trajectory of the business.”
The deal is expected to create an “enhanced proposition across the UK and markets in Western Europe.”
Britvic’s non-alcoholic beverages are available in the UK, Ireland, France, Brazil, as well as global markets such as the Middle East, and Asia.
As part of the deal, the Danish brewer will take over Britvic’s bottling agreement with PepsiCo.
Carlsberg, which brews Tuborg beer, distributes PepsiCo drinks in Norway and Switzerland.
Following Britvic’s acceptance of the in July, Carlsberg revealed it had also agreed to acquire Marston’s 40% stake in its UK joint venture, Carlsberg Marston’s Brewing Company (CMBC).
A management team comprising staff from Carlsberg, CMBC, and Britvic will oversee the new Carlsberg Britvic entity.
The combined company will offer a diverse portfolio, including beer and soft drinks.
