Formal investigation launched into £3.3bn takeover of Britvic

Carlsberg’s £3.3bn takeover of Britvic is officially being investigated by the Competition and Markets Authority (CMA).

The CMA said in September that it was considering whether the deal could result in a substantial lessening of competition, and has now launched a formal investigation.

It has set a deadline of December 18 for a decision from the first phase of its investigation.

The CMA has issued a second invitation for interested parties to submit views about the impact that the proposed merger could have on competition in the UK. It will add to insights gained as part of its preliminary invitation to comment in September. 

The deal for Britvic was agreed in July after the soft drinks giant rejected two previous bids.

The Danish brewer is offering 1,290 pence per share for Britvic, with a dividend that gives shareholders 1,315 pence per share, as it looks to build on Britvic’s presence in Great Britain, Western Europe and Brazil.

A deal was already struck with PepsiCo to waive a change-of-control clause as part of its long-term bottling agreement with Britvic, removing a potential block to the acquisition.

The Robinsons and Tango maker has its headquarters in Hemel Hampstead but comes from roots in Somerset and has factories in Rugby, London and Leeds, as well as offices in Tamworth and Solihull.

A single integrated beverage company will be created through the deal and known as Carlsberg Britvic. It will be led by a management team comprised of individuals from Carsberg, Britvic and CMBC and take advantage of the “highly synergistic relationship between beer and soft drinks”.