The Caterer – Products & Equipment

The Competition and Markets Authority (CMA) has launched an investigation into the proposed £3.3 billion merger between Britvic and Carlsberg.

Syrup producer Robinsons accepted the Danish brewery’s offer in July after the two companies negotiated for weeks and Carlsberg’s two previous offers were rejected.

The CMA has decided to investigate this transaction and examine whether the merged entity would lead to “a significant lessening of competition” in the UK markets.

The state regulator is now issuing a preliminary invitation to comment to give interested parties the opportunity to provide “initial views on the impact the transaction may have on competition in the United Kingdom.”

Those affected have until Tuesday, September 24, to submit their comments.

This is the first part of the CMA’s information gathering process before the government agency’s formal investigation begins.

A Carlsberg spokesman said: “We believe that the combination of Carlsberg’s operations with Britvic will create a highly attractive multi-beverages player, benefiting from an efficient supply chain and distribution network, and offering customers a portfolio of market-leading brands and first-class customer service.”

“The CMA’s request for comment is a standard step in the review of the transaction and was always expected. Following approval by Britvic shareholders last month and subject to regulatory approvals and satisfaction of other outstanding conditions, the transaction is expected to be completed by the first quarter of 2025.”

Britvic is worth £4.1 billion after deducting debt. Carlsberg will pay Britvic shareholders 1,315 pence per share and will also receive a special dividend of 25 pence per share.

The Danish brewer said it intends to create a single integrated drinks company in the UK called Carlsberg Britvic, which will have a broad portfolio of beer and soft drink brands such as J20, Pepsi Max and Hobgoblin.

Carlsberg will also acquire Marston’s 40 percent stake in its joint venture brewing business.

The brewery recently increased its earnings forecast for 2024 from 1-4% organic operating profit growth to 4-6%.

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