By Sabela Ojea

The U.K.'s Competition and Markets Authority said Friday that it has cleared a proposed joint-venture agreement between the brewer Carlsberg and the British beer company and pub operator Marston's.

The transaction will now complete at the end of October, said Marston's.

The U.K. regulator looked at whether the fact that Marston's owns several pubs across the U.K. could harm competition, as smaller independent brewers could be negatively affected by the deal, but found that these pubs form only a small part of the potential U.K. customer base for brewers.

"While the establishment of the joint venture means that the two businesses are likely to distribute each other's products more frequently, potentially leaving less room to take on other brands, the CMA found that brewers will continue to have sufficient alternative wholesalers to choose from after the merger," the watchdog added.

Marston's shares at 0702 GMT were up 2.72 pence, or 6.6%, at 44.24 pence.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

10-09-20 0331ET