The UK’s Competition and Markets Authority (CMA) has begun a formal investigation into Carlsberg’s US$4.28 billion deal with Britvic amid competition concerns. 

The watchdog has opened an “invitation to comment” to allow feedback from interested parties about how the potential deal could impact competition in the UK drinks market. Comments will be taken until November 6.

A phase 1 decision is slated for December 18.

UK beverage powerhouse?

The probe comes after the UK Pepsi bottler and soft drinks maker Britvic agreed to a takeover bid of £3.28 billion (US$4.2 billion) from Carlsberg in July. The move is expected to allow the Danish brewer to expand its drinks bottling operations in the UK and beyond beer.

Carlsberg already bottles PepsiCo drinks in several markets, with the potential to expand. Britvic’s soft drinks brands include Robinson’s, Tango and J20.

Britvic’s shareholders have already voted in favor of the offer.

At the time, Ian Durant, a non-executive chair of Britvic, said the proposed deal “creates an enlarged international group well-placed to capture the growth opportunities in multiple drinks sectors.”

He added that Carlsberg’s agreement with PepsiCo provides the “combined group with a strong platform for continued success.”