Carlsberg Group, a global brewing company, has agreed to acquire Wernesgrüner Brewery in Saxony, Germany.

The company are yet to disclose the financial details of the deal.

Under the agreement with Bitburger Braugruppe, Carlsberg will buy Wernesgrüner Brewery as well as the Wernesgrüner beer brand.

The acquisition of Wernesgrüner will boost Carlsberg’s portfolio and presence in northern and eastern Germany.

Additionally, it will enhance its supply chain network, production and logistics’ efficiency and flexibility.

The brewery has a capacity to produce approximately 1m hectolitres (hl). Last year, the brewery produced nearly 0.5m hl and generated a revenue of €31m.

Subject to competition clearance, the deal is expected to be completed on 1 January 2021.

Carlsberg Group CEO Cees ’t Hart said: “The acquisition of the Wernesgrüner Brewery will strengthen our position in our core regions of northern and eastern Germany.

“We will be able to offer a stronger portfolio to our customers, and the acquisition will bring considerable benefits in both production and logistics.”

Earlier this week, the UK’s Competition and Markets Authority (CMA) approved the proposed joint venture (JV) between the two brewing companies Carlsberg and Marston’s.

The proposed £780m ($1bn) deal was first announced in May when Carlsberg UK reached an agreement with British brewery, pub and hotel operator Marston’s to establish the JV beer company in the country.