UK Competition Watchdog to Investigate Carlsberg’s £3.3bn Takeover of Britvic
The UK’s Competition and Markets Authority (CMA) has called for public comments on Carlsberg’s proposed £3.3bn ($4.2bn) acquisition of soft drinks company Britvic. The regulator is seeking insights into whether the takeover could lead to a “substantial lessening of competition” within the UK market.
In a statement, the CMA invited input from “any interested party” until 24 September, aiming to gather perspectives on how the merger might affect competition in the UK. Additionally, the CMA noted it may contact companies and organisations active in the relevant markets or those with valuable evidence to assist in its investigation.
The inquiry into the proposed merger will begin once the comments are collected, although a specific start date has not yet been confirmed. Both Carlsberg and Britvic have been approached for comment, though Britvic has already declined to make a statement.
The Danish brewing giant, Carlsberg, made headlines in July when Britvic, known for its J20 drinks, accepted a £3.3bn bid from Carlsberg after rejecting two previous offers. Carlsberg’s second proposal, made in June, valued Britvic at £3.2bn, or 1,250 pence per share.
Related: Carlsberg to Acquire Britvic for £3.3 Billion, Creating UK Beverage Powerhouse
Carlsberg aims to integrate Britvic into a single UK-based beverage entity, Carlsberg Britvic, blending beer and soft drinks in one portfolio. The company also announced plans to acquire Marston’s 40% stake in their joint brewing venture, Carlsberg Marston’s Brewing Company (CMBC), further consolidating its position in the UK market.
Carlsberg has expressed its intention to boost investments in Britvic, with a focus on accelerating growth through enhanced commercial and supply chain operations. The merger team will include staff from Carlsberg, CMBC, and Britvic, aiming to steer the newly formed Carlsberg Britvic forward.
The Danish brewer has a history in soft drinks, with products like Tuborg Light Squash in Denmark, Xixia in China, and Tuborg Soda in Greece. Carlsberg’s acquisition of Britvic is expected to enhance its influence in the UK beverage market, though the CMA’s review will determine if the deal might harm competition.
Source: Yahoo
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