Deal between Carlsberg and Marston鈥檚 given the go-ahead
The CMA has cleared the proposed joint venture between brewing companies Carlsberg and Marston鈥檚.
Both companies are large brewers of beer and cider, as well as offering related services, such as wholesale supply of their own and other producers鈥� drinks to pubs and restaurants. Marston鈥檚 also owns a significant number of pubs located across the UK.
The decision by the Competition and Markets Authority (CMA) follows an investigation into several possible ways in which the deal could harm competition in the supply of beer and cider in the UK.
As pubs currently owned or operated by Marston鈥檚 might choose to sell fewer independent brands after the merger in favour of more Carlsberg products, the CMA considered whether access to pubs by smaller independent brewers could be adversely affected as a result of the deal.
The CMA found, however, that Marston鈥檚 pubs form only a small part of the potential UK customer base for brewers, and that independent brewers would continue to have sufficient access to pubs after the merger, allowing them to compete effectively.
The CMA also considered whether combining the wholesaling services that both companies provide, through which they distribute their own and other producers鈥� drinks to pubs and restaurants, could raise competition concerns. While the establishment of the joint venture means that the 2 businesses are likely to distribute each other鈥檚 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.
In relation to their role as brewers, the CMA found that Carlsberg and Marston鈥檚 have different areas of focus, meaning competition between the 2 businesses is generally limited at present, with Carlsberg largely focusing on the production of lager and Marston鈥檚 focusing on ale. They also face several competitors in all of the product categories where they are both active.
The CMA鈥檚 investigation has therefore concluded that the deal does not give rise to competition concerns.
For more information, including a summary of the CMA鈥檚 decision, please visit the Carlsberg UK Holdings Limited / Marston鈥檚 PLC merger inquiry page.