Carlsberg's £3.3bn takeover of Britvic gets green light from competition watchdog

'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'

Carlsberg's £3.3bn takeover of Britvic, the maker of Robinsons squash, has received the go-ahead from Britain's competition authorities.

The Competition and Markets Authority (CMA) concluded its initial probe and announced on Tuesday that there will be no refer for an in-depth inquiry. This clearance marks one of the year's most significant corporate transactions, allowing completion by January 16.

Already backed by investors and the European Commission, the deal was eagerly awaiting this final nod to proceed. A spokesman for Carlsberg said: "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.

"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."

The merger, unveiled last July, aims to combine Carlsberg’s extensive beer lineup with Britvic’s soft drink favourites. Following the integration, the new entity will emerge as Carlsberg Britvic, establishing a formidable presence within the beverage sector.

Britvic, the Hemel Hempstead-based company that also produces J2O and Tango, had previously turned down a £3.1bn offer from beer giant Carlsberg. The Danish brewer, which owns brands such as 1664 and Brooklyn, has stated its belief that merging with Britvic could result in annual cost savings of £100m.

Britvic also holds an exclusive licence with US partner PepsiCo to manufacture and sell brands like Pepsi, 7up and Lipton iced tea in the UK. The acquisition was given the thumbs up by Britvic’s shareholders in August, with both companies expecting to finalise the deal in early 2025, pending regulatory approval.

As part of the announcement, Carlsberg also revealed plans to buy out Wolverhampton-based Marston’s, known for beers like Pedigree and Hobgoblin, from the joint venture brewing business run by the two firms for £206m.

Additionally, Carlsberg will take over Britvic’s bottling agreement with PepsiCo as part of the takeover. Carlsberg already bottles PepsiCo drinks in several markets, but sees potential for further global expansion.