Marston’s has formed a joint venture with Carlsberg UK to create a brewing and distribution company.

Marston’s said the partnership values its brewing business at up to £580 million and Carlsberg UK’s brewing business at £200 million.

Marston’s is set to get a 40% stake in the new business, which will be called Carlsberg Marston’s Brewing Company.

Ralph Findlay, chief executive of Marston’s, said: “This new partnership acknowledges Marston’s strategy, position and consistent outperformance against the UK beer market, realising value for shareholders, while retaining an interest in the future upside of the combined entity.

“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 that represents an exciting new chapter in Marston’s established brewing heritage and future potential, while enabling it to further reduce its debt and focus on maximising value from its high-quality pub estate.”

Tomasz Blawat, managing director of Carlsberg UK, added: “We are excited to move into the next phase of our growth strategy. After a successful relaunch of Carlsberg Danish Pilsner in the UK last year, we are now building a new beer company by combining two organisations with shared values and strong history and heritage in brewing.

“Our intent for CMBC is for it to become a platform for growth for all of our customers and suppliers, offering a bigger beer portfolio of complementary international, national and regional brands. We believe the new business will deliver even more value for employees, customers and consumers, thereby creating greater future growth potential.”

Cees ‘t Hart, chief executive of Carlsberg Group, said: “The creation of the joint venture is an important step forward for our UK business. 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.”