On the go: Carlsberg will remain the sole sponsor of its UK defined benefit pension scheme after it is absorbed into a joint venture with fellow beer producer Marston’s.
The formation of Carlsberg Marston’s Brewing Company, the latest in a long line of consolidations in the sector, comes as new legislation looks set to deter some companies from future mergers involving DB schemes.
Carlsberg, which obtains a 60 per cent stake in the £780m joint venture, will continue to fund all contributions to its pension scheme under the terms of the deal, compensating Marston’s for any losses incurred.
Carlsberg was approached but declined to comment on the matter.
The joint venture was announced last week, after the coronavirus pandemic delayed the ratification of a new pension schemes bill that advisers at Deloitte said should “dramatically change [mergers and acquisitions] and restructuring where DB pensions are involved”.
If the bill becomes law it could introduce additional regulatory checks to protect pension members, resulting in fewer deals amid “an intense period of adjustment and nervousness as the new rules are interpreted and applied”, the advisers said.
The joint venture between Marston’s and the Dutch beer giant comes on the back of a surge in M&A activity within the sector in recent years, as international companies look to expand and snap up smaller producers.
