Carlsberg To Buy Britvic for $4.2bn

By Reuters
Carlsberg To Buy Britvic for $4.2bn

Carlsberg has agreed to buy British soft drinks maker Britvic for £3.3 billion (€3.9 billion) and buy out UK pub group Marston's from its joint venture with the Danish brewer, in a bid to create a UK beverage company.

Carlsberg shares rose nearly 4% in morning trade. Britvic rose nearly 5% and Marston's jumped 15%.

"We view it (Britvic deal) as a relatively low risk transaction with attractive financials," Jefferies analysts wrote in a note.

Distribution Networks

Carlsberg's announcement on Monday said that it plans to create an integrated beer and soft drinks company in Britain, taking advantage of common procurement, production and distribution networks.

Founded in Denmark in 1847, Carlsberg has a long history in Britain.


It first shipped its beer to the United Kingdom in 1868 and started brewing in Northampton, England, in 1973. In the 1990s Carlsberg merged with the owners of Tetley's ale and in 2020 formed a brewing joint venture with Marston's.

International Markets

The new Carlsberg Britvic business will also strengthen the Danish group's partnership with PepsiCo, which has bottling deals with both Carlsberg and Britvic.

All major brewers are looking to expand into new products in the face of long-term decline in some markets, with some drinkers switching to spirits or cutting back on alcohol consumption altogether.

Britvic sells non-alcoholic drinks in Britain, Ireland, Brazil and other international markets such as France, the Middle East and Asia.

Western Europe

The Britvic deal will help deepen Carlsberg's footprint in Western Europe and build on its bottling business in the Nordic region. The Danish firm sees cost savings of around £100 million (€118 million), it said.


Carlsberg raised its bid for Britvic to 1,315 pence per share - comprising cash and a special dividend of 25 pence a share - after the British company rejected 1,250 pence per share last month.

Marston's said on Monday that it would sell its 40% stake in its brewing joint venture Carlsberg Marston's Limited for £206 million (€243.5 million) in cash.