Probe into proposed Beamish takeover by Heineken set to enter second phase
The re-started Phase I study, undertaken by the Authority, has a deadline of August 3, but due to the upcoming August Bank Holiday break, the body is likely to go public with its initial findings this Friday (August 1).
While none of the relevant parties were formally saying anything yesterday, one source close to proceedings said while there was still time for the Authority to make a final ruling on the proposed takeover before the Phase I deadline, “it is looking increasingly likely that matters will move forward to a second phase of study.”
While the first phase only lasted for a month, Phase II studies can run for anything up to three months. It has already been speculated that the issue may not get sorted until the autumn.
While the European Commission passed the €10.4 billion takeover of Beamish’s parent company, Scottish & Newcastle, by the Heineken/Carlsberg consortium earlier this year, it sent the Irish element of the deal to the Irish Competition Authority for further scrutiny over fears of Heineken’s increased powers in Ireland (it already owns Murphy’s brewery in Cork) damaging wider competition here.
“There are a lot of variables to look at and one of the main ones, which the European Commission has already shown concern over — the question of the takeover eroding price competitiveness in the Irish drinks sector — could be an issue, as Beamish has been a considerable driver of price competition in recent times,” according to one Dublin-based analyst.
Since this process began, Heineken has consistently opposed the notion that its buyout of Beamish & Crawford would be bad for competition, claiming it has been one of the biggest promoters of competition in the Irish drinks market over the past two decades.
If the deal is blocked, it is thought the existing management team at Beamish & Crawford might mount their own takeover attempt for the business.
