CMA launches official investigation into Carlsberg Britvic merger
The Competition and Markets Authority (CMA) has set an official deadline for the first phase of the investigation into Carlsberg’s £3.3bn acquisition of soft drinks manufacturer Britvic.
The UK competition watchdog said it will complete the first stage of the formal investigation into whether the merger will reduce competition in the UK drinks market by 18 December.
The CMA first announced it was “considering” whether a formal investigation would be necessary in September, and invited “interested parties to comment”.
A spokesperson for Carlsberg told The Guardian that the CMA’s investigation was “a normal process that was expected, and we look forward to working constructively with the CMA as it progresses”.
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They added: “We believe that the combination of Carlsberg’s business with Britvic will create a highly attractive multi-beverage supplier, benefiting from an efficient supply chain and distribution network, and providing customers with a portfolio of market-leading brands and leading customer service.”
The review follows Danish brewer Carlsberg’s successful takeover proposal of the UK-based soft drinks manufacturer in July, after Britvic previous rejected two previous bids, claiming it “significantly” undervalued its portfolio.
Speaking at the time, Carlsberg group CEO Jacob Aarup-Andersen said the acquisition of Britvic, which owns popular brands such as 7up, Gatorade, Robinsons, Tango, Fruit Shoot and Whites Lemonade, was an “attractive” transaction for its shareholders.
Aarup-Andersen said: “The proposed transaction is attractive for shareholders of Carlsberg, supporting our growth ambitions, being immediately earnings accretive and value-accretive in year three.
“We are committed to accelerating commercial and supply chain investments in Britvic, and we are confident that Carlsberg Britvic will become the preferred multi-beverage supplier to customers in the UK with a comprehensive portfolio of market-leading brands.”
