UK watchdog clears Carlsberg’s acquisition of Britvic

Britain’s competition regulator the Competition and Markets Authority (CMA) has cleared Carlsberg’s deal with soft drinks maker Britvic, saying it would not refer the £3.3 billion (US$4.18 billion) transaction for an in-depth probe.

Carlsberg struck a deal to acquire the British soft drinks maker back in July, aiming to establish a “powerhouse” in drinks.

The deal, which is expected to close on January 16, 2025, will see the Danish brewer taking over Britvic’s bottling agreement with PepsiCo.

Carlsberg already bottles PepsiCo drinks in several markets and sees a potential to expand into additional geographies in the future.

The companies said in a joint statement that “all regulatory conditions have been satisfied, including clearances from the European Commission and the UK’s CMA.”

Carlsberg clinched the takeover with a higher bid of 1,315 pence per share — comprising cash and a special dividend of 25 pence a share — after Britvic rejected 1,250 pence per share in June.

The company has a long history in Britain. It first shipped its beer to the UK in 1868 and started brewing in Northampton in 1973. In the 1990s Carlsberg merged with the owners of Tetley’s ale and in 2020 formed a brewing joint venture with Marston’s.

Britvic sells non-alcoholic drinks in Britain, Ireland, Brazil and other international markets such as France, the Middle East and Asia.

In October, CMA began a formal investigation into Carlsberg’s US$4.28 billion deal with Britvic amid competition concerns. 

The watchdog opened an “invitation to comment” to allow feedback from interested parties about how the potential deal could impact competition in the UK drinks market.