The Competition and Markets Authority (CMA) is set to investigate Carlsberg’s planned acquisition of Britvic amid competition concerns.
- The CMA is assessing whether the merger could significantly reduce market competition in the UK.
- A preliminary stage invites public commentary and insights from those involved in the industries affected.
- The investigation spans both the soft drink and alcohol sectors, with no set deadline for a final decision.
- Britvic initially rejected two bids before accepting Carlsberg’s £3.3 billion offer in July.
The Competition and Markets Authority (CMA) has announced its intention to investigate Carlsberg’s planned acquisition of soft drink manufacturer Britvic, a move that raises potential competition concerns within the UK market. The regulatory body is evaluating whether the merger may substantially lessen competition and adversely affect the dynamics of the industry.
The CMA is currently in the preliminary phase of their investigation, during which it has issued an ‘invitation to comment’ to gather feedback from interested parties. This stage allows stakeholders to express their views and concerns, which will inform the CMA’s decision-making process. The authority will also engage with companies and organisations active in the relevant markets to assess the impact thoroughly.
The investigation will consider Carlsberg’s influence in both the soft drinks and alcohol sectors. Although the deadline for the CMA’s final decision has not been established, this scrutiny follows Britvic’s acceptance of Carlsberg’s £3.3 billion offer in July, after previously declining two other proposals.
Silviu Popovici, CEO of PepsiCo Europe, commented on the merger, emphasising potential enhancements in sales and distribution capabilities. He expressed confidence in the benefits of combining the strengths of both Carlsberg and Britvic, noting, “We look forward to continuing to expand the partnership into further important markets in the future.”
The investigation by CMA reflects significant concern around maintaining fair competition in the UK market following substantial mergers.
