Marston’s has announced the completion of its £780m joint venture with Carlsberg UK.

Initially agreed in May, the proposed merger of Marston’s brewing arm with Carlsberg’s UK division was delayed pending a review by the Competitions and Markets Authority, but has since been approved by the watchdog.

The merger will see Marston’s take a 40% stake in the newly created Carlsberg Marston’s Brewing Company as well as a cash payment of up to £273m.

Carlsberg UK, which is valued at £200m, will receive a 60% stake and the controlling interest.

The deal is expected to create significant value through synergies and productivity improvements, with CMBC predicting reported annual joint venture cost synergies of approximately £24 million by the end of the third year following completion.

Announcing the proposed merger in May, Marston’s CEO Ralph Findlay 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 network and wholesale opportunity.

“Marston’s will play a key role in the prospects of the combined entity which represents an exciting new chapter in Marston’s established brewing heritage and future potential, whilst enabling it to further reduce its debt and focus on maximising value from its high quality pub estate.”