Both companies will inject their brewing and distribution assets into the joint venture. In addition, at completion Carlsberg will pay up to GBP 273m to Marston’s PLC, GBP 34m of which will be a deferred contingent payment. Consequently, Carlsberg will become the controlling shareholder, owning 60% of the joint venture, with Marston’s owning 40%. The transaction is anticipated to complete in the second half of this calendar year, subject to shareholder approval at Marston’s and competition clearance.

The Carlsberg Marston’s Brewing Company will have a strong portfolio of international, national and regional beer brands. Carlsberg’s brands include Carlsberg Danish Pilsner, Carlsberg Expørt, Poretti, Tetley’s, Somersby cider and the London Fields Brewery craft portfolio, as well as the UK licence for San Miguel, Mahou and the Brooklyn Brewery craft beer portfolio. The Marston’s portfolio includes Hobgoblin, Wainwright, Marston’s Pedigree and 61 Deep, and the company also owns the Banks’s, Jennings, Ringwood and Eagle beer brands. It also has the UK licence for global brands Estrella Damm, Shipyard, Erdinger, Warsteiner and Kirin.

 Under the terms of the proposal, the joint venture will have access to the Marston’s pub estate for its beer portfolio through a long-term strategic partnership. Marston’s operates around 1,400 pubs. The joint venture will benefit from Marston’s Beer Company’s wide distribution network. Marston’s Beer Company distributes to around 11,000 customers directly, including the independent free trade, other pub companies, the off-trade and export.

 CEO Cees ’t Hart says: “The creation of the joint venture is an important step forward for our UK business. The joint venture’s brand portfolio will allow us to offer a significantly stronger beer portfolio to our UK customers, and at the same time extend distribution into the Marston’s pub estate. In addition, the combined business will bring our customers wider choice, greater capacity, product innovation, and marketing and distribution efficiency benefits.”