Watchdogs may probe £780m brewery merger
REGULATORS are considering whether to launch an investigation into the £780million merger between Carlsberg’s UK division and brewer Marston’s.
The Competition and Markets Authority said it would establish whether the deal announced in June could reduce competition in Britain, although it emphasised that no decision has been made.
The move makes attempts by Carlsberg and Marston’s to seal the deal by the end of September – initially slated as a hopeful completion date – unlikely.
Interested parties are invited to submit their views to the agency by September 2.
If the deal is not held up, the two companies hope to create the Carlsberg Marston’s Brewing Company, with Marston’s brewing business valued at £580million and Carlsberg’s UK brewing division at £200million.
Marston’s said it will own a 40 per cent stake in the joint venture and will use the plans to focus on its pub and accommodation business.
The companies said talks started towards the end of 2019, and they had hoped to seal the deal in the third quarter of 2020.
Ralph Findlay, chief executive of Marston’s, said in June that the deal was a “sign of confidence” in the long-term future of the UK brewing sector.
He said: “It’s clearly a very difficult time right now for brewery and pub operators. We know that things will remain uncertain over the next few months, but we are confident that this strengthens our position in the long term.”
Tomasz Blawat, managing director of Carlsberg UK, told PA that the “strong heritage” of both firms made the venture logical.
He said: “I believe in having a strong balance of international brands and local brands. The deal complements this perfectly.”