Britain's Competition and Markets Authority (CMA) said that it has launched a formal investigation into the deal between Carlsberg and Britvic, setting a deadline of 18 December for its phase-1 decision.
Carlsberg struck a deal to acquire the British soft drinks maker in July aiming to establish a UK beverage 'powerhouse'.
The deal includes the Danish brewer taking over Britvic's bottling agreement with PepsiCo. Carlsberg already bottles PepsiCo drinks in several markets and sees potential to expand into additional geographies in the future.
The competition regulator said it is assessing whether the deal is expected to result in a substantial reduction in competition in any market in the United Kingdom for goods or services.
"This is a normal process that was expected, and we look forward to working constructively with the CMA as it progresses," a Carlsberg spokesperson told Reuters in an emailed statement.
Britvic did not immediately respond to a request for comment.
Food and beverage M&A activity increased by close to a third in the UK in the second quarter of 2024, rising by 32.4%, new data from corporate finance house Oghma Partners has found.
Carlsberg Lifts Outlook
In August, the Danish brewer lifted its forecast for full-year operating profit growth, despite posting weaker-than-expected sales for the second quarter, hit by bad June weather.
The company said it now expects full-year organic operating profit growth of between 4% and 6%, up from the previously guided range of 1% to 5%.
'As a result of continued solid execution and good cost control, we're increasing our earnings expectations for the year despite volumes in Q2 being challenged by bad weather and weak consumer sentiment in some Asian markets,' the company noted.
