The £3.3 billion acquisition of Britvic, the British manufacturer of Robinsons squash, by Carlsberg, the Danish beer company, is under scrutiny, amid fears that it could stifle competition across the UK drinks sector. An initial phase of inquiry into the merger has been launched by the UK’s Competition and Markets Authority (CMA).
The companies declared their union in July, emphasising that the convergence of Carlsberg’s diverse beer portfolio with Britvic’s non-alcoholic beverages would forge an “enlarged international conglomerate” capable of branching out into various drinks categories. Hertfordshire-based Britvic, also the company behind brands like J2O and Tango, had earlier declined a £3.1 billion offer.
The regulatory body – the CMA – expressed on Tuesday its intent to compile data before initiating a comprehensive examination. It has invited public commentary on this proposed merger’s possible effect on British competition. Typically, it probes issues like whether an amalgamation could cause prices to surge, the quality of products to fall or customers to suffer from diminished choices if rivals are elbowed out of the marketplace.
Carlsberg, owner of other brands including 1664 and Brooklyn, argues that this merger with Britvic would enable it to slash its costs by £100 million annually. Britvic also enjoys an exclusive contract with its American ally PepsiCo to manufacture and distribute brands such as Pepsi, 7up, and Lipton iced tea exclusively in the UK.
The transaction was given the thumbs-up by Britvic’s investors last month. Both companies are optimistic of wrapping up the deal within the initial months of 2025, contingent on regulatory approval.