Britain’s competition regulator approves Carlsberg’s £3.3 billion acquisition of Britvic

The £3.3 billion acquisition of Britvic, known for producing Robinsons squash, by Carlsberg has received approval from the UK’s competition authority. This clearance facilitates one of the most significant takeover transactions of the year. The two companies disclosed their agreement in July, aiming to combine Carlsberg’s diverse range of beers with the soft drink offerings of Britvic, which is headquartered in Hemel Hempstead, Hertfordshire. The Competition and Markets Authority (CMA) had indicated in September that it would initiate an preliminary inquiry. However, the authority confirmed on Tuesday that it would not advance the merger to a comprehensive, in-depth investigation. The transaction is anticipated to conclude on 16 January. A spokesperson for Carlsberg stated: “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.” The spokesman added: “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.” Following the completion of the takeover, Carlsberg intends to establish a unified, integrated beverage enterprise to be named Carlsberg Britvic. Britvic, a company with approximately 4,500 employees that also produces J2O and Tango, had earlier declined an offer of £3.1 billion from the beer conglomerate. The company maintains an exclusive licensing agreement with its US associate, PepsiCo, for the production and distribution of brands including Pepsi, 7up, and Lipton iced tea within the UK. Carlsberg, whose brand portfolio includes 1664 and Brooklyn, will assume Britvic’s bottling contract with PepsiCo as an element of this transaction. The Danish brewing company has previously bottled PepsiCo beverages in various markets and perceives an opportunity for global expansion in this area. Concurrently with the deal’s announcement, Carlsberg also disclosed its intention to acquire Wolverhampton-based Marston’s, producer of Pedigree and Hobgoblin beers, from the joint venture brewing operation managed by the two entities, for a sum of £206 million.