Carlsberg’s £3.3 billion deal to buy Robinsons squash maker Britvic has been given the green light by Britain’s competition watchdog, smoothing the way for one of the year’s biggest takeover deals.
The Competition and Markets Authority (CMA) had said in September it would launch an initial probe, but confirmed on Tuesday it would be not be referring the tie-up for a full in-depth investigation.
The deal is now expected to complete on January 16, with the CMA clearance marking the final hurdle needed for it to go ahead, having already received investor approval and the go ahead from the European Commission.
A Carlsberg spokesman said: “We’re delighted to have received all necessary regulatory clearances and, subject to the satisfaction of the court, we look forward to completing the transaction in January 2025.
“We believe the combination of Carlsberg and Britvic will create a highly attractive multi-beverage supplier in the UK, with an efficient supply chain and distribution network that provides our customers with a portfolio of market-leading brands and world-class service.”
The two businesses announced the agreement in July to bring together Carlsberg’s array of beers with Britvic’s soft drinks portfolio.
Carlsberg plans to create a single integrated drinks business called Carlsberg Britvic after completing the takeover.
Britvic – which is based in Hemel Hempstead, Hertfordshire, and employs around 4,500 people – also makes J2O and Tango, and had previously rejected a £3.1 billion bid from the beer giant.
Danish brewer Carlsberg, which also owns brands including 1664 and Brooklyn, has previously said it believes the integration with Britvic can secure it £100 million in cost efficiencies a year.
Britvic also holds an exclusive licence with US partner PepsiCo to make and sell brands such as Pepsi, 7up and Lipton iced tea in the UK.
The acquisition was approved by Britvic’s shareholders in August, with the firms expecting to complete the deal in the first few months of 2025 should they get the green light from regulators.
On announcing the deal, Carlsberg also said it would buy out Wolverhampton-based Marston’s, which makes Pedigree and Hobgoblin beers, from the joint venture brewing business run by the two firms for £206 million.
Carlsberg will also take over Britvic’s bottling agreement with PepsiCo as part of the takeover.
Carlsberg already bottles PepsiCo drinks in a number of markets, but sees potential to expand this further worldwide.