CMA investigating Carlsberg’s £3.3bn Britvic deal

The Britvic board accepted a £3.3bn bid from Carlsberg on 8 July, with the firm’s shareholders voting in favour of the deal at a meeting on 27 August.​​

However, the CMA has now invited comment from interested parties as part of an information-gathering process that will inform a Phase 1 investigation.

Comments can be submitted between 10 and 24 September, although the date for the initial inquiry launch has not yet been announced.

In a statement published on its website, the CMA said that the probe would consider whether the transaction, if completed, would “result in a substantial lessening of competition”​ within the drinks market.

With regards to the comment process, the statement added: “The CMA may proactively contact companies and organisations that are active in the markets affected by the merger, or have valuable insights or evidence that could assist the CMA’s investigation.”​

In response to the news, a spokesperson for Carlsberg said: “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.”​

Background on the deal

It took Carlsberg three bids before the Britvic board finally approved an improved £3.3bn offer, valuing the firm at 1,315p per share. 

Carlsberg and Britvic said at the time of the announcement that the expectation was for the deal to be completed during the first quarter of 2025.

Should it not face further pushback from the CMA, Carlsberg plans to create a single integrated beverage company in the UK named Carlsberg Britvic.

To facilitate this, the brewer also agreed to purchase the 40% stake in Carlsberg Marston’s Brewing Company (CMBC) owned by Marston’s for £206m. This is expected to close during Q3 of 2024.

The CMA has confirmed it will provide an update on its probe once a Phase 1 investigation is officially launched.

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