Officials probe brewing tie-up

Regulators are considering whether to launch an investigation into the £780 million merger between Carlsberg’s UK division and brewer Marston’s.

The Competition and Markets Authority (CMA) said it would establish whether the deal announced in June could reduce competition in the UK, 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 competition date – unlikely. CMA officials said in a statement: “The Competition

and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

Interested parties are invited to submit their views to the agency by 2 September.

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 £580m and Carlsberg’s UK brewing division at £200m.

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 hope to seal the deal in the third quarter of 2020.

Ralph Findlay, boss 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: “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.”