Brewing company Marston’s has agreed to sell its 40% stake in Carlsberg Marston’s Limited (CMBC) for £206m.

Danish brewer Carlsberg will take full control of CMBC, a joint venture between the pair valued at £780m.

The merger between Marston's and Carlsberg to form was announced in May 2020, in a move which involved Marston’s six breweries and distribution depots, but not its pubs.

Marston’s, which operates an estimated 1,370 pubs across the UK, suggested that the deal to sell its stake to Carlsberg would “significantly reduce” the group’s debt, but still allow it to see the benefit from a continued strategic partnership with CMBC.

Marston’s CEO, Justin Platt, commented: “In my first six months with the business, it has become very clear to me that our core capability and key opportunity to unlock value for shareholders is in driving a focused and successful pub business.

“This deal further strengthens our balance sheet, significantly reducing our debt by over £200m. In addition, CMBC remains a valued strategic partner and we continue to benefit from our ongoing long-term brand distribution agreement with it.

“Crucially, it allows us to become a pure play hospitality business and focus on what we do best – namely, giving our guests amazing pub experiences. I look forward to delivering on the opportunities a focused pub business will provide to ensure we maximise value for our shareholders.”

The move also came on the same day that Carlsberg reached an agreement for the takeover of drinks maker Britvic in a deal valued at £3.3bn.

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