The UK Competition and Markets Authority (CMA) and the European Commission have approved the proposed merger between Danish brewer Carlsberg and soft drinks specialist Britvic.
The deal, valued at £3.3 billion, was reached in July after weeks of negotiations, during which Britvic rejected Carlsberg’s first two offers. In September, the CMA launched an investigation into the transaction, which progressed to a formal inquiry in October.
The acquisition remains subject to a court-sanctioned scheme, with a court hearing scheduled for January 15, 2025. If the remaining conditions are met, the scheme is expected to become effective on January 16, 2025.
A Carlsberg spokesperson commented that it was pleased to have received all necessary regulatory approvals and, subject to court approval, we expect to complete the transaction in January 2025.
The combination of Carlsberg and Britvic will create a highly attractive multi-drink supplier in the UK, with an efficient supply chain and distribution network that will offer our customers a portfolio of market-leading brands and world-class service, say the company’s management.
The deal values Britvic at £4.1 billion, excluding debt. Carlsberg will pay Britvic shareholders 1.315 pence per share, plus a special dividend of 25 pence per share.
The Danish brewer announced its intention to create a single integrated beverage company in the United Kingdom, to be called Carlsberg Britvic, with a broad portfolio of beer and soft drink brands, including J20, Pepsi Max and Hobgoblin.
Britvic’s latest financial results showed revenues of £1.9 billion for the year ended September 30, 2024, up 9.5 % from £1.7 billion in 2023. Net profit also rose by 1.8 %, from £124 million last year to £125.8 million.
