High Court judge approves Carlsberg's Britvic acquisition

High Court judge approves Carlsberg's Britvic acquisition

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Carlsberg's £3.3 billion deal to buy J2O maker Britvic has been approved by a High Court judge, paving the way for Carlsberg UK Holdings Limited to acquire the company.

According to recent reports, the court sanctioned the takeover at a short hearing on Wednesday (15), stating the scheme "could be and should be approved", BBC reported.

The approval by the court is the final step in a process that began with an agreement between Britvic and Carlsberg on July 8, 2024.

The Danish brewery, which also owns brands including 1664 and Brooklyn, said it planned to create a single integrated drinks business called Carlsberg Britvic following the takeover.

The company said it will create an "enlarged international group" that could expand into "multiple drinks sectors".

Britvic holds an exclusive licence with US partner PepsiCo to make and sell brands such as Pepsi, 7up and Lipton Ice Tea in the UK.

Andrew Thornton KC, for Britvic, said in written submissions that the company was "the largest supplier of branded still soft drinks and the number two supplier of carbonated soft drinks in Great Britain".

The hearing in London was told that the deal will see Britvic taken over by Carlsberg UK Holdings Limited, a wholly-owned subsidiary of Carlsberg A/S, which Thornton described as "one of the world's largest international brewing groups" with a market capitalisation of £13bn.

The acquisition was approved by Britvic's shareholders last August, with the Competition and Markets Authority giving its approval in December.

The CMA launched the merger inquiry on 23 October, following the announcement of the £3.3 billion deal in July.

The companies said they have also received the clearance from the European Commission to proceed with the acquisition, satisfying all regulatory conditions.