CMA progresses Carlsberg Britvic merger investigation into inquiry

The Competition and Markets Authority (CMA) has moved its investigation into the proposed £3.3b merger between Britvic and Carlsberg into a formal inquiry.

The Robinsons squash maker accepted the Danish brewer’s bid in July after weeks of negotiations between the two firms which saw Carlsberg’s two previous offers rejected.

The CMA first announced it was looking into the transaction in September, considering whether the combined enterprise would “result in a substantial lessening of competition” within UK markets.

The government watchdog has now issued a second invitation to comment, to allow any interested parties “a further opportunity to submit views about the impact that the proposed merger could have on competition in the UK”.

The CMA will take into account all views already submitted and the deadline for this next round of submissions is 6 November.

It will then announce whether it will refer the merger for a phase two investigation by 18 December.

A spokesperson for Carlsberg said: “We note the commencement of the CMA’s phase one investigation. This is a normal process that was expected, and we look forward to working constructively with the CMA as it progresses.

“We believe that the combination of Carlsberg’s business with Britvic will create a highly attractive multi-beverage supplier, benefitting from an efficient supply chain and distribution network, and providing customers with a portfolio of market leading brands and leading customer service. Subject to regulatory approvals and other outstanding conditions being satisfied, the transaction is expected to complete by Q1 2025.”

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.

Carlsberg is also acquiring Marston’s 40% stake in its joint venture brewing business.