The competition watchdog has kicked off an investigation of Carlsberg’s £3.3bn takeover of soft drinks supplier Britvic.
The Competition & Markets Authority is inviting comments on the deal from companies and organisations with knowledge of the drinks industry before deciding whether to launch a formal Phase 1 merger inquiry.
It forms the first part of the CMA’s information-gathering process on the deal.
Interested parties have until 24 September to submit comments on the takeover.
The watchdog will then take a view on if the combination could harm competition in the UK’s drinks category.
“The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” a statement from the CMA said.
A spokesman for Carlsberg told The Grocer: “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.
“The CMA’s invitation to comment is a standard step in its review of the transaction and was always fully expected. Following approval from Britvic’s shareholders last month, and subject to regulatory approvals and other outstanding conditions being satisfied, the transaction is expected to complete by Q1 2025.”
Carlsberg’s offer at £12.90 a share was approved by the Britvic board in July, after the Danish brewer increased its offer following two earlier bids being rejected.
Britvic shareholders gave the deal the green light last month, voting overwhelmingly in favour of the deal at a general meeting.
Carlsberg plans to roll its UK Carlsberg-Marston’s business up with Britvic to create a drinks powerhouse to be known as Carlsberg Britvic.
The takeover is part of the brewer’s ‘Beyond Beer’ strategy to diversify its offering.
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