Carlsberg’s $4.23 Billion Britvic Acquisition Gets Final UK Approval

Carlsberg’s $4.23 billion acquisition of British soft drinks maker Britvic has received the green light from the UK’s Competition and Markets Authority (CMA), according to The Wall Street Journal. The regulator announced on Tuesday that it would not escalate the deal to an in-depth investigation, paving the way for the transaction to move forward.

Carlsberg, the Danish brewing giant, first announced its agreement to acquire Britvic in July. The deal, valued at £13.15 per share, aims to establish what Carlsberg describes as a beverage “powerhouse” in the UK and across Europe. Britvic, a prominent name in the soft drinks industry, produces popular brands including Robinsons squash, J20, and R White’s lemonade.

Following the acquisition, the combined entity will operate under the name Carlsberg Britvic. The move is expected to integrate Britvic’s extensive soft drinks portfolio with Carlsberg’s beer brands, which include well-known products like Kronenbourg 1664 and Brooklyn Lager. Carlsberg stated that the collaboration would enhance their ability to serve customers with a broader multi-beverage offering while leveraging a more efficient supply chain and distribution network.

Read more: UK Competition Watchdog to Investigate Carlsberg’s £3.3bn Takeover of Britvic

“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,” a Carlsberg spokesperson said.

The deal is set to close on January 16, 2024. As part of the acquisition, Carlsberg will assume Britvic’s bottling agreement with PepsiCo. This move aligns with Carlsberg’s existing partnership with PepsiCo in other markets and signals the brewer’s intention to further expand bottling operations across additional regions.

In a joint statement, Carlsberg and Britvic confirmed that all necessary regulatory approvals have been obtained, including clearances from both the European Commission and the UK’s Competition and Markets Authority.

Source: The Wall Street Journal