UK – The UK High Court has sanctioned Carlsberg’s £3.3 billion (US$4B) acquisition of Britvic, paving the way for the creation of a new integrated drinks business, Carlsberg Britvic.
The approval, granted by Justice Hildyard on January 15, 2024, followed shareholder consent in August 2023 and clearance from the UK’s Competition and Markets Authority in December.
The judge stated the scheme “could be and should be approved,” concluding the final legal hurdle for the takeover.
Britvic, a leading producer of soft drinks in the UK, is headquartered in Hemel Hempstead and employs approximately 4,500 people.
Its portfolio includes household names such as J2O and Robinsons, alongside an exclusive licensing agreement with PepsiCo for the production and distribution of brands like Pepsi, 7UP, and Lipton Ice Tea in the UK market.
The acquisition will see Britvic integrated into Carlsberg UK Holdings Limited, a wholly-owned subsidiary of the Danish brewery giant Carlsberg A/S.
Carlsberg, known for its iconic beer brands such as 1664 and Brooklyn, aims to leverage the acquisition to strengthen its global presence and foster synergies between beer and soft drink offerings.
Carlsberg Britvic will be led by a management team drawn from Carlsberg, Britvic, and China Mengniu Dairy Company (CMBC). The newly formed entity is expected to benefit from what Carlsberg described as the “highly synergistic relationship between beer and soft drinks.”
In the financial year ending September 2024, Britvic reported a 9.5 percent increase in revenue, reaching £1,899 million (us$1.96b), and a 15.2 percent rise in adjusted EBIT to £250.9 million (us$258.5m). The company credited this growth to robust consumer demand and successful brand expansions.
The approval comes after Carlsberg finalized its exit from Russia with the sale of its business, Baltika Breweries.
In December, Russia approved the divestment deal, valued at 34 billion roubles (US$320.75 million), to VG Invest which is required to allocate 15 percent of the brewery’s market value to the Russian federal budget.
The buyer, VG Invest, is a newly registered company managed by Yegor Guselnikov, vice president at Baltika Breweries.
Carlsberg described the transaction as “a management buy-out,” with the company to be equally owned by two longstanding Baltika employees currently holding leadership roles.
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