Investigation into Carlsberg acquisition of Britvic moved to phase 1

A preliminary ‘invitation to comment’ window was launched on 10 September 2024 in order to allow interested parties to submit their views about how the deal could impact competition within the UK drinks market.

That window closed on 24 September and following an assessment of the evidence submitted, the CMA has now issued a second ‘invitation to comment’, which provides interested third parties a further opportunity to their submit views on the transaction.

New comments will be accepted until 6 November, with a phase 1 decision scheduled to be announced on 18 December.

Should the phase 1 investigation raise further concerns about how the deal will impact drinks market competition, the inquiry can be moved to phase 2 and could eventually be blocked.

Carlsberg manufactures a range of popular beers and ciders, while Britvic's portfolio in the UK includes soft drink brands such as Robinsons, Tango and J20.

Background

The acquisition was first planned acquisition was first revealed on 8 July, with Britvic accepting an offer worth £3.3bn.

Britvic shareholders voted in favour of the offer at a meeting on 27 August​​, at which point it was said that subject to regulatory approval, the deal would be completed during the first quarter of 2025.

In light of the CMA announcement, a spokesperson for Carlsberg commented: “We note the commencement of the CMA’s phase 1 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.”​

In other news, food giant Nestlé has announced a series of changes to its executive board​​​​​, as new CEO Laurent Freixe targets quicker decision making.