LONDON (ShareCast) - (Sharecast News) - Brewery, pub and hotel operator Marston's said on Thursday that completion of its brewing joint venture with Carlsberg will occur a little later than expected.
Marston's and Carlsberg agreed in May to merge the former's brewing division with the latter's UK business in a joint venture worth around £780m.

Under the terms of the agreement, Marston's will receive a 40% stake in Carlsberg Marston's Brewing Company, and a cash equalisation payment of up to £273m. Marston's said it will focus on its pub and accommodation business while retaining its stake in "a larger, more attractive brewing business".

The London-listed company said that for "procedural reasons", the UK's Competition and Markets Authority will now be the relevant competition authority rather than the European Commission.

"As a result, completion is now anticipated to take place slightly later than expected as the CMA completes its review," it said, adding that it is expected to take place in the fourth quarter rather than the third.

"As stated previously, we do not expect that the transaction raises any competition concerns and are satisfied that the group has sufficient liquidity in place to meet its requirements ahead of completion."

Shore Capital analyst Greg Johnson said: "We view the formation of Carlsberg Marston's Beer Co (CMBC) as a masterstroke by management. It provides a significant initial cash injection (of up to £273m), an annual ongoing cash contribution (circa £20m consistent with that as a standalone entity) and upside from potential future cost and revenue synergies through its retained 40% stake."

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