Britain's competition regulator cleared Carlsberg's deal with soft drinks maker Britvic on Tuesday, saying it would not refer the $4.23 billion (€4.03 billion) transaction for an in-depth probe.
Carlsberg struck a deal to acquire the British soft drinks maker in July, aiming to establish a UK beverage 'powerhouse.'
The deal, which is expected to close on January 16, will see the Danish brewer taking over Britvic's bottling agreement with PepsiCo. Carlsberg already bottles PepsiCo drinks in several markets and sees potential to expand into additional geographies in the future.
Carlsberg and Britvic said in a separate joint statement that all regulatory conditions have been satisfied, including clearances from the European Commission and the UK's Competition and Markets Authority.
Carlsberg's announced in July 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.
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.
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.
Article by Reuters, additional reporting by Hospitality Ireland.
