Carlsberg will be allowed to acquire the Marston’s brewery group after the Competition and Markets Authority (CMA) ruled that the deal would not significantly harm consumers.
The merger, estimated to be worth in the region of £780 million, was announced in May this year in an attempt to cut costs amid the coronavirus pandemic.
According to reports, Carlsberg would own 60 per cent of the new brewery and drinks business which boasts a portfolio of over 1,400 pubs and bars across the UK.
It was also reported that Marston’s would use a £273 million payment from Carlsberg to reduce its outstanding liabilities.
But the deal attracted significant opposition from industry bodies, citing that the merger would reduce choice for consumers.
Among these, Campaign for Real Ale (CAMRA) chief executive, Tom Stainer, said the deal could hurt smaller brewers.
“This is why the CMA must make sure that any merger does not stifle fair competition, access to market for brewers, and ensure decent consumer choice of beer in pubs up and down the country,” he said.
However, the regulator has now concluded that the deal would not significantly alter competition in the supply of beer and cider in the UK.
While it was agreed that pubs operated by Marston’s might “choose to sell fewer independent brands”, the portfolio forms only a “small part of the potential UK customer base for brewers”.
“Independent brewers would continue to have sufficient access to pubs after the merger, allowing them to compete effectively,” said the CMA.
Likewise, brewers will “continue to have sufficient alternative wholesalers to choose from after the merger”.
The full findings of the CMA investigation can be found here.
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