The Competition and Markets Authority (CMA) has initiated an official inquiry into the significant £3.3 billion acquisition of Britvic by Carlsberg.
The UK’s competition authority, the CMA, has officially announced a deadline for the first stage of its investigation into whether Carlsberg’s acquisition of the soft drinks manufacturer Britvic will diminish competition within the UK beverage market. This examination is set to conclude by 18 December.
Initially, in September, the CMA shared its intentions to assess the necessity of a formal investigation, seeking input from ‘interested parties’. Now, as the process advances, Carlsberg has expressed its anticipation of cooperating with the CMA, describing this scrutiny as a ‘routine procedure’. A Carlsberg spokesperson stated their readiness to work constructively with the authority.
The merging of Carlsberg with Britvic promises to establish a robust multi-beverage supplier, leveraging an efficient supply chain and distribution network. Carlsberg projects that this merger will deliver a diverse array of market-leading brands coupled with superior customer service.
This investigation follows Carlsberg’s successful acquisition proposal, accepted after Britvic previously dismissed two offers that it deemed undervaluing its assets. Carlsberg Group’s CEO Jacob Aarup-Andersen has highlighted the attractiveness of this transaction for shareholders, noting its immediate positive impact on earnings and potential for value enhancement by the third year.
Aarup-Andersen has further emphasised Carlsberg’s dedication to enhancing both commercial and supply chain frameworks within Britvic. He projected that the combined entity, Carlsberg Britvic, will emerge as the preferred multi-beverage supplier in the UK, offering a comprehensive collection of market-leading brands.
The CMA’s investigation will be crucial in determining the competitive implications of the Carlsberg and Britvic merger, a significant development within the UK drinks market.
