The highly anticipated merger between Carlsberg, the Danish brewing giant, and soft drinks company Britvic has received approval from both the UK’s Competition and Markets Authority (CMA) and the European Commission. This landmark deal, valued at £3.3 billion, was initially agreed upon in July following extensive negotiations, during which Britvic rejected Carlsberg’s first two offers.
After launching an investigation into the proposed merger in September, the CMA progressed the matter to a formal inquiry in October. On 17 December, the CMA announced: “The CMA has cleared the anticipated acquisition by Carlsberg UK Holdings Limited of Britvic plc. The full text of the decision will be published shortly.”
While regulatory hurdles have been overcome, the acquisition remains subject to a court-sanctioned scheme of arrangement. A court hearing is scheduled for 15 January 2025, with the scheme expected to take effect on 16 January 2025, pending satisfaction of all remaining conditions.
A spokesperson for Carlsberg expressed enthusiasm for the merger’s progress, stating: “We’re delighted to have received all necessary regulatory clearances and, subject to court approval, we look forward to completing the transaction in January 2025.
“This merger will establish a highly attractive multi-beverage supplier in the UK, leveraging an efficient supply chain and distribution network to offer customers a portfolio of leading brands and exceptional service.”
Under the terms of the deal, Britvic shareholders will receive 1,315p per share along with a special dividend of 25p per share. The agreement values Britvic at £4.1 billion, excluding debt.
The merged entity, to be named Carlsberg Britvic, will combine a diverse range of beer and soft drink brands, including J20, Pepsi Max, and Hobgoblin. This strategic partnership aims to create a single, integrated drinks company in the UK, offering a comprehensive portfolio to its customers.
Britvic’s most recent financial results reflect strong performance, with revenue reaching £1.9 billion for the year ending 30 September 2024, a 9.5% increase from the previous year’s £1.7 billion. Profit after tax also rose to £125.8 million, up from £124 million in 2023.
With the merger set to complete early next year, Carlsberg Britvic is poised to become a major player in the UK’s hospitality and licensed trade sector, promising a robust portfolio of market-leading beverages and enhanced operational efficiencies.