Marston’s shares (LON: MARS) surged 5.92% on Friday as the group the UK Competition and Markets Authority (CMA) gave the go-ahead for a £780m merger with Carlsberg.

The transaction will be completed by the end of October 2020.

“While the establishment of the joint venture means that the 2 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,” it was said in a statement.

The combined groups will value Martson’s at £580m and Carlsberg at £200m.

Analysts at Peel Hunt commented: “The deal should now complete at the end of this month, resulting in an immediate cash windfall of £239mln (close to the company’s market capitalisation) without any detrimental impact on the company’s cash flow.”

Marston’s shares (LON: MARS) are trading +3.80% at 43,10 (0846GMT).