The UK Competition and Markets Authority (CMA) has set a December deadline for its investigation into Carlsberg’s acquisition of Britvic, which began today (23 October).
The CMA has until 18 December to decide whether it needs to “refer the merger for a phase 2 investigation”.
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Alongside the announcement, the CMA has released a second invitation for comments on the deal, to enable “all interested parties a further opportunity to submit views” on the potential impact of the acquisition on national competition.
Interested parties are required to send their opinions by 6 November.
The call for a second set of comments today (23 October) follows on from the watchdog’s initial call in September.
In a statement at the time, the CMA said it planned to examine whether the Danish brewer’s proposed takeover could “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
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By GlobalDataCommenting on the CMA’s latest announcement, a spokesperson for Carlsberg said: “We note the commencement of the CMA’s Phase 1 investigation. This is a normal process that was expected, and we look forward to working constructively with the CMA as it progresses.
“We believe that the combination of Carlsberg’s business with Britvic will create a highly attractive multi-beverage supplier, benefitting from an efficient supply chain and distribution network, and providing customers with a portfolio of market leading brands and leading customer service. Subject to regulatory approvals and other outstanding conditions being satisfied, the transaction is expected to complete by Q1 2025.”
Britvic declined to comment on the news.
The Robinsons squash maker accepted a takeover bid from Carlsberg in July worth £3.3bn ($4.2bn).
It marked the third offer Carlsberg had made for the UK soft drinks group. The month prior, Britvic rejected two proposals, with the second bid worth around £3.2bn ($4.2bn), or 1,250 pence a share.
Following Britvic’s approval of the deal, Carlsberg said it intended to “accelerate commercial and supply chain investments in Britvic, driving the future growth trajectory of the business”.
The Tuborg brewer is planning to develop a single integrated beverage company in the UK, called Carlsberg Britvic.
When Britvic accepted the deal, Carlsberg also announced it had agreed to scoop up Marston’s 40% stake in their UK joint venture, Carlsberg Marston’s Brewing Company (CMBC).
A team of staff taken from Carlsberg, CMBC and Britvic are to manage the new Carlsberg Britvic entity. The business’s portfolio will include beer and soft drinks.
