Working on £780m Carlsberg deal during pandemic was ‘interesting’

Sealing an international deal worth hundreds of millions of pounds amid a developing global pandemic was an “interesting” business, according to Marston’s Scottish-born chief executive, Ralph Findlay.

Talks between the Stock

Exchange-listed company and Danish lager giant Carlsberg on merging their brewing operations started towards the end of last year.

By the time the pair announced their new £780 million joint venture, which does not include Marston’s UK-wide restaurant and lodge business, Britain had been in lockdown for nearly two months.

As the deal-making entered its final phase the companies had to turn to online options such as Zoom and data rooms to complete the process.

Mr Findlay said: “Conversations started on November 19 and heads of terms were agreed in February, but due diligence was just getting under way as the lockdown began.”

Final formalities for the deal involved a face-to-face meeting with Carlsberg’s bosses in the Danish capital, Copenhagen.

Lockdown for Marston’s has meant the mothballing of around 1,400 premises, furloughing 13,000 staff and 20% pay cuts. Mr Findlay himself has taken a 50% salary cut. The joint venture will bring

Marston’s £273m this year and a further £34m 12 months from completion. The firm also agreed a further £70m credit facility with its banks which should allow it to operate into next year, even with its pubs shut. Mr Findlay added: “The pub sector is getting unprecedented support but we are still spending money.”

Ralph Findlay