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The Competition and Markets Authority (CMA) is investigating Carlsberg’s £3.3bn (approx. $4.2bn) deal to buy soft drinks company Britvic.

The two beverage giants agreed on the deal in July 2024, after Britvic previously rejected an offer of £3bn (approx. $3.95bn) from the Danish brewer in June. Britvic revealed that Carlsberg’s revised offer had the approval of its board and was expected to close in the fourth quarter of 2024, subject to regulatory approvals.

Both companies have stated that the deal would be beneficial for their businesses and contribute to increased opportunities for growth, with Britvic’s non-executive chair, Ian Durant, commenting that the proposed transaction “creates an enlarged international group that is well-placed for opportunities in multiple drinks sectors”.

However, the CMA has announced it will be gathering information to investigate whether the deal could be expected to result in a ‘substantial lessening of competition’ in the UK market, and is inviting interested parties to submit their views on the potential impact of the transaction on competition in the country.

The invitation to comment forms the initial stage of the CMA’s information gathering process, prior to beginning a formal investigation. The competition watchdog confirmed it may proactively contact companies and organisations that are active in the markets impacted by the proposed merger.

A spokesperson for Carlsberg told FoodBev: “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”.

“The CMA’s invitation to comment is a standard step in its review of the transaction and was always fully expected. Following approval from Britvic’s shareholders last month, and subject to regulatory approvals and other outstanding conditions being satisfied, the transaction is expected to complete by Q1 2025.”

FoodBev has reached out to Britvic for comment.

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