*

CMA sets Dec 18 deadline for Phase 1 decision

*

Carlsberg says CMA investigation is normal process,

Britvic ( BTVCF )

declines comment

(Adds background in paragraph 3, Britvic's ( BTVCF ) response in

paragraph 6)

Oct 23 (Reuters) - Britain's Competition and Markets

Authority(CMA) launched a formal investigation into Carlsberg's

3.3 billion pounds ($4.28 billion) deal with Britvic ( BTVCF )

, the regulator said on Wednesday.

Carlsberg struck a deal to acquire the British soft drinks

maker in July aiming to establish a UK beverage "powerhouse".

The deal includes the Danish brewer taking over Britvic's ( BTVCF )

bottling agreement with PepsiCo ( PEP ). Carlsberg already

bottles PepsiCo ( PEP ) drinks in several markets and sees potential to

expand into additional geographies in the future.

The regulator has set a deadline of Dec. 18 for its Phase 1

decision and said it is assessing whether the deal is expected

to result in a substantial reduction in competition in any

market in the United Kingdom for goods or services.

"This is a normal process that was expected, and we look

forward to working constructively with the CMA as it

progresses," a Carlsberg spokesperson said in an emailed

statement.

Britvic ( BTVCF ) declined to comment.

($1 = 0.7701 pounds)