CMA Launches Inquiry into UK Brewing Merger
The UK’s Competition and Markets Authority (CMA) has launched an inquiry into the proposed deal by Carlsberg and Marston’s to form a joint venture beer company in the UK – Carlsberg Marston’s Brewing Company. Both companies plan to inject their brewing and distribution assets into the joint venture.
The Carlsberg Marston’s Brewing Company will have a strong portfolio of international, national and regional beer brands. Carlsberg’s brands include Carlsberg Danish Pilsner, Carlsberg Export, Poretti, Tetley’s, Somersby cider and the London Fields Brewery craft portfolio, as well as the UK licence for San Miguel, Mahou and the Brooklyn Brewery craft beer portfolio. The Marston’s portfolio includes Hobgoblin, Wainwright, Marston’s Pedigree and 61 Deep, and the company also owns the Banks’s, Jennings, Ringwood and Eagle beer brands. It also has the UK licence for global brands Estrella Damm, Shipyard, Erdinger, Warsteiner and Kirin.
Carlsberg Marston’s Brewing Company will have assets including Carlsberg UK’s Northampton brewery, London Fields brewery, and national distribution centre; and Marston’s six national and regional breweries – Marston’s, Banks’s, Wychwood, Jennings, Ringwood and Eagle – and 11 distribution depots.
Under the terms of the proposal, the joint venture will have access to the Marston’s pub estate for its beer portfolio through a long-term strategic partnership. Marston’s operates around 1,400 pubs. The joint venture will benefit from Marston’s Beer Company’s wide distribution network. Marston’s Beer Company distributes to around 11,000 customers directly, including the independent free trade, other pub companies, the off-trade and export.
The CMA has launched its phase 1 investigation following the European Commission’s decision to refer the case to the United Kingdom under Article 4(4) of the EC Merger Regulation.
