Carlsberg and Britvic merger cleared to complete

The UK’s Competition and Markets Authority (CMA) and the European Commission have approved the proposed merger between Danish brewer Carlsberg and soft drinks specialist Britvic.

 

The £3.3b deal was agreed between the beverage giants in July after weeks of negotiations that saw Britvic reject Carlsberg’s first two bids.

 

In September the CMA opened an investigation into the transaction, before progressing it into a formal inquiry in October.

 

Today (17 December) the governmental body stated: “The CMA has cleared the anticipated acquisition by Carlsberg UK Holdings Limited of Britvic plc. The full text of the decision will be published shortly.”

 

The acquisition remains subject to a court sanctioned scheme, with a court hearing scheduled to take place on 15 January 2025. Depending on the remaining conditions being satisfied, the scheme is expected to become effective on 16 January 2025.

 

A Carlsberg spokesperson 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.”

 

The deal values Britvic at £4.1b excluding debt. Carlsberg will pay Britvic shareholders 1,315p per share while they will also receive a special dividend payment of 25p per share.

 

The Danish brewer said it intended to create a single integrated drinks company in the UK, to be named Carlsberg Britvic, which would have a wide portfolio of beer and soft drinks brands including J20, Pepsi Max and Hobgoblin.

 

Britvic’s latest financial results showed it posted £1.9b in revenue for the year ended 30 September 2024, a 9.5% increase from 2023’s £1.7b. Likewise, profit after tax rose 1.8% to £125.8m from last year’s £124m.