Marston’s beer and pub company has revealed plans for a £780 m merger with Carlsberg UK.

The two beer giants will join forces to form Carlsberg Marston’s Brewing Company, in a deal worth £580 m for Marston and £200 m for Carlsberg UK. Marston’s will hold a 40 % share in the joint company and earn up to £ 273 m in cash, with Carlsberg holding the 60 % stake. The two firms have estimated the merger in their first three years will produce cost savings of £24 m. Cees’t Hart, chief executive of Carlsberg UK, said: “The joint venture’s brand portfolio will allow us to offer a significantly stronger beer portfolio to our UK customers. In addition, the combined business will bring our customers wider choice, greater capacity, product innovation and marketing and distribution efficiency benefits.” According to the news on The Caterer, Ralph Findlay, chief executive of Marston’s, said: “Marston’s strong heritage, extensive distribution platform and established reputation for brewing and logistics excellence, together with Carlsberg UK’s values, long history in beer, brand portfolio and scale, combine the best attributes of both to create a compelling beer business with an outstanding portfolio of global and local beer brands, proven brewing expertise, strong distribution networks and wholesale opportunity.”