Both companies are large brewers of beer and cider, as well
as offering related services, such as wholesale supply of
their own and other producers’ drinks to pubs and
restaurants. Marston’s also owns a significant number of pubs
located across the UK.
The decision by the Competition and Markets Authority (CMA)
follows an investigation into several possible ways in which
the deal could harm competition in the supply of beer and
cider in the UK.
As pubs currently owned or operated by Marston’s might choose
to sell fewer independent brands after the merger in favour
of more Carlsberg products, the CMA considered whether access
to pubs by smaller independent brewers could be adversely
affected as a result of the deal.
The CMA found, however, that Marston’s pubs form only a small
part of the potential UK customer base for brewers, and that
independent brewers would continue to have sufficient access
to pubs after the merger, allowing them to compete
effectively.
The CMA also considered whether combining the wholesaling
services that both companies provide, through which they
distribute their own and other producers’ drinks to pubs and
restaurants, could raise competition concerns. While the
establishment of the joint venture means that the 2
businesses are likely to distribute each other’s products
more frequently, potentially leaving less room to take on
other brands, the CMA found that brewers will continue to
have sufficient alternative wholesalers to choose from after
the merger.
In relation to their role as brewers, the CMA found that
Carlsberg and Marston’s have different areas of focus,
meaning competition between the 2 businesses is generally
limited at present, with Carlsberg largely focusing on the
production of lager and Marston’s focusing on ale. They also
face several competitors in all of the product categories
where they are both active.
The CMA’s investigation has therefore concluded that the deal
does not give rise to competition concerns.
For more information, including a summary of the CMA’s
decision, please visit the Carlsberg UK Holdings
Limited / Marston’s PLC merger inquiry page.
