Competition watchdog opens probe into Carlsberg’s £3.3bn takeover of Britvic

The Competition and Markets Authority has opened the first phase of an investigation into the tie-up.

J2O owner Britvic raised the prices of its products in the first quarter of its financial year, in a bid to offset double-digit cost inflation (Britvic/PA)

Carlsberg’s £3.3 billion deal to buy Robinsons squash maker Britvic is being investigated over potential concerns that it could reduce competition across the UK market.

The Competition and Markets Authority (CMA) said it had opened the first phase of an investigation into the tie-up.

The two businesses announced the agreement in July and said the integration of Carlsberg’s array of beers with Britvic’s soft drinks would create an “enlarged international group” that can expand into “multiple drinks sectors”.

Britvic, which is based in Hemel Hempstead, Hertfordshire, and also makes J2O and Tango, had previously rejected a £3.1 billion bid.

The CMA on Tuesday said it planned on gathering information before kickstarting a formal investigation.

The watchdog has invited people to submit their thoughts on the acquisition and potential impact on competition in the UK.

It typically looks into concerns such as whether a merger could result in higher prices, lower quality products or less choice for customers, if it pushes out competitors in a market.

Carlsberg, which also owns brands including 1664 and Brooklyn, 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 last month, with the firms expecting to complete the deal in the first few months of 2025 should they get the green light from regulators.