The blockbuster deal was agreed to on 8 July 2024 and received the backing of Britvic shareholders in late August following the firm’s AGM.
However, the deal was subject to plenty of regulatory scrutiny, with the Competition and Markets Authority (CMA) announcing the launch of an investigation into the merger in September. The transaction was also conditional on the receipt of clearance from the European Commission.
As of 17 December though, Carlsberg has received clearance from both bodies to complete the deal, a process that it said will take place in the new year.
“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,” said a spokesperson for Carlsberg.
“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.”
Background
The path to this deal was by no means simple, with Britvic rebuffing Carlsberg’s first two offers before finally agreeing to a deal that valued the firm at 1,315p per share or £3.3bn.
On the deal’s announcement, Carlsberg said that it intends to form a new integrated beverage company in the UK named Carlsberg Britvic, combining the two firms' portfolios.
The Danish drinks giant currently trades in the UK as Carlsberg Marston’s Brewing Company (CMBC), following a merger with brewer Marston’s in 2020.
However, it completed the purchase of Marston’s 40% stake in CMBC for £206m in July.
Discussing his vision for the combined business, Carlsberg CEO Jacob Aarup-Andersen explained that the deal allowed the firm to develop an “enhanced proposition” capable of succeeding in the UK and across Western Europe.
“The proposed transaction is attractive for shareholders of Carlsberg, supporting our growth ambitions, being immediately earnings accretive and value-accretive in year three,” added Aarup-Andersen.
“We are excited about expanding our global partnership with PepsiCo and believe that the longer-term opportunities will be very beneficial for both companies.”
CMBC’s portfolio includes brands such as Carlsberg, Brooklyn and 1664, while Britvic manufactures Robinsons, J2O and Lipton.
