Carlsberg's £3.3bn Britvic takeover gets High Court judge approval

The High Court has given the go-ahead for Carlsberg's £3.3 billion acquisition of Britvic, the maker of J2O. This decision paves the way for Danish brewery giant, owning brands like 1664 and Brooklyn, to merge with Britvic into a single organisation named Carlsberg Britvic.

Hemel Hempstead-based Britvic, an employer of approximately 4,500 staff and producer of popular beverages such as Robinsons squash and Tango, is set to strengthen its market position following the announcement last July of forming an "enlarged international group" with ambitions to venture into various drinks sectors. Mr Justice Hildyard, at a brief legal session on Wednesday, endorsed the takeover, affirming that the scheme "could be and should be approved".

Legal representative Andrew Thornton KC outlined Britvic’s stature as "the largest supplier of branded still soft drinks and the number two supplier of carbonated soft drinks in Great Britain", in his written submission. The London hearing unfolded details of the takeover; Carlsberg UK Holdings Limited, a fully owned subsidiary of Carlsberg A/S – one of the globe's leading brewing entities with a hefty valuation of 118 billion Danish kroner (£13 billion) – is set to absorb Britvic.

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After obtaining approval from Britvic shareholders last August and a subsequent green light from the Competition and Markets Authority in December, the deal is now set to proceed.

Mr Thornton, a representative of the company, stated that Britvic’s directors gave a "unanimous recommendation" for the scheme and assured it "will not have any adverse impact on the interests of the company’s creditors". Carlsberg has previously expressed its belief that the integration with Britvic could result in £100 million in cost efficiencies annually.

The beer giant also revealed plans to buy out Wolverhampton-based Marston’s, known for producing Pedigree and Hobgoblin beers, from the joint venture brewing business run by the two firms for £206 million. Britvic currently holds an exclusive licence with US partner PepsiCo to manufacture and sell brands such as Pepsi, 7up and Lipton Ice Tea in the UK, which Mr Thornton confirmed would continue post-takeover.

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