Watchdog to investigate Marston’s and Carlsberg’s joint venture

United Kingdom | Only after some prodding did the competition authority decide to probe the joint venture between UK brewer and pub operator Marston’s and Carlsberg UK, which was announced in May 2020.

The watchdog will sniff out if the proposed brewing and distribution joint venture between Marston’s and Carlsberg will result in a substantial lessening of competition.

Under the agreement, Marston’s will receive a 40 percent stake in the joint venture, plus a cash payment of up to GBP 273 million (USD 365 million). The joint venture had valued Marston’s brewing business at GBP 580 million and Carlsberg's UK business at GBP 200 million.

Marston’s had said it would use the proceeds from the joint venture to pay down debt, which stood at GBP 1.4 billion (USD 1.9 billion) at the end of 2019.

The Competition & Markets Authority had invited comments on the transaction until 2 September.