Marston’s and Carlsberg get green light for £780m brewing JV
Brewers Marston’s and Carlsberg have been given the go-ahead to complete a £780m joint venture after a Competition and Markets Authority (CMA) investigation.
Shares in London-listed Marston’s rose 16.7 per cent as markets cheered the decision.
The UK’s competition watchdog said that as the two firms had different areas of focus, competition between the two was “limited” at present.
Carlsberg, it said, is generally focused on the production of lager, while Marston’s is principally an ale maker.
“While the establishment of the joint venture means that the two businesses are likely to distribute each other’s products more frequently, potentially leaving less room to take on other brands, the CMA found that brewers will continue to have sufficient alternative wholesalers to choose from after the merger.”, it said in a statement.
The deal will conclude by the end of October, Marston’s said.
The two struck the deal to merge their brewing businesses back in May. The joint venture will value Martson’s brewing business at up to £580m and Carlsberg’s at £200m.
Tomasz Blawat, Carlsberg’s managing director, said:
“We welcome the decision by the CMA and wish to put on record our thanks to them for the thoroughness of their work in recent months.
“The joint venture between Carlsberg UK and Marston’s PLC to form the Carlsberg Marston’s Brewing Company, unites two historic brewers with shared values, history and heritage, to create a company with a sustainable future in UK brewing.
“Today’s decision is a significant milestone in the formation of the new company, which we believe will create significant value for employees, customers and beer-drinkers in the UK, and we look forward to moving to the next stage on this journey.”