CMA to open first phase of probe into Carlsberg's acquisition of Britvic

10th Sep 2024 09:47

(Sharecast News) - The Competition and Markets Authority said on Tuesday that it was opening the first phase of an investigation into Danish brewer Carlsberg's £3.3n acquisition of Britvic.

The CMA said it would consider whether the deal would result in a "substantial lessening" of competition within any market or markets in the UK for goods or services.

The competition watchdog said it was issuing a preliminary "invitation to comment" to allow interested parties to submit any initial views on the impact the deal could have on competition.

"This invitation to comment is the first part of the CMA's information-gathering process, in advance of the CMA's formal investigation starting," it said.

Britvic agreed to the deal in July, having rejected two previous bids from Carlsberg. Under the terms of the acquisition, Britvic shareholders will get £13.15 a share, including a special dividend of 25p a share.

A spokesperson for Carlsberg said on Tuesday: "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."