On 8 July 2024, Carlsberg and Britvic reached a landmark agreement, which subsequently gained the support of Britvic shareholders in late August following the company’s Annual General Meeting (AGM).
Nonetheless, the deal faced significant regulatory examination. Notably, the Competition and Markets Authority (CMA) initiated an investigation into the merger in September. The transaction also hinged on clearance from the European Commission.
As of 17 December, Carlsberg secured approvals from both the CMA and the European Commission to finalize the deal, which is slated to occur in the new year.
“We’re delighted to have received all necessary regulatory clearances and, subject to the satisfaction of the court, we look forward to completing the transaction in January 2025,” stated a Carlsberg spokesperson.
“We believe 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.”
Background
The journey to this agreement was complex, with Britvic initially rejecting Carlsberg’s first two offers. Ultimately, a deal valuing the company at 1,315p per share, or £3.3 billion, was accepted.
Upon announcing the deal, Carlsberg revealed plans to establish a new integrated beverage company in the UK, named Carlsberg Britvic, which will blend the portfolios of both firms.
Carlsberg currently operates in the UK as Carlsberg Marston’s Brewing Company (CMBC), a name stemming from its merger with Marston’s in 2020. Recently, it acquired Marston’s 40% stake in CMBC for £206 million in July.
Discussing his vision for the new entity, Carlsberg CEO Jacob Aarup-Andersen emphasized that the merger enhances the firm’s offering in the UK and Western Europe.
“The proposed transaction is attractive for shareholders of Carlsberg, supporting our growth ambitions, being immediately earnings accretive and value-accretive in year three,” Aarup-Andersen noted.
“We are excited about expanding our global partnership with PepsiCo and believe that the longer-term opportunities will be very beneficial for both companies.”
CMBC boasts a diverse brand portfolio that includes Carlsberg, Brooklyn, and 1664, while Britvic produces popular brands such as Robinsons, J2O, and Lipton.
