The Competition and Markets Authority (CMA) is investigating Carlsberg’s £3.3bn acquisition of Britvic, with concerns that it would have a monopoly on the UK drinks market.

The merged company, to be named Carlsberg Britvic, is intended to expand into “multiple drinks sectors” and create an “enlarged international group”.

However, the CMA has been looking into whether it would reduce competition in the drinks market, a fear retailers expressed when the deal was announced. Concerns of cost-cutting and cutting down of representatives were also heard.

The investigation will asses whether the takeover could result in market dominance at the expense of consumers with higher prices, lower quality products or less choice for customers.

Britvic shareholders approve £3.3bn Carlsberg takeover

The deal is expected to be completed during the first quarter of 2025.

At the time of the deal being made, Ian Durant, non-executive chair of Britvic, said: “The proposed transaction creates an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors.

“Crucially, to remain competitive at a time when the market is being shaped by the trend of increasing consolidation among bottling partners, Carlsberg’s agreement with PepsiCo provides the combined group with a strong platform for continued success.”

The CMA is issuing an ‘invitation to comment’ to allow the public to submit any views on the impact that the transaction could have on UK competition.

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