Competition Authority to embark on full investigation into Beamish takeover
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 Competition Authority for further scrutiny over fears that a &duopoly could emerge in the Irish beer and stout markets.
Having initiated an initial review, the Competition Authority announced yesterday it was mounting a full investigation (Phase 2) into Heineken’s proposed takeover of Beamish & Crawford.
Heinken already owns Murphys Stout and some fear it would cease making either Beamish or Murphy’s if it got control of B&C.
In a statement yesterday, the authority said it was unable to conclude, without further investigation, that the transaction would not “substantially lessen competition in the Irish drinks market”.
It said the deadline for making a final determination of the proposed transaction is November 3, 2008.
Those who have concerns in either direction have been asked to make written or oral submissions, which must be made no later than 5pm on August 21, 2008.
Previously, Heineken said it believes its proposed takeover of B&C& is good for the Irish drinks market and will not kill off either of Cork’s iconic stout brands — Beamish or Murphy’s.
A spokesman for the Dutch brewer said the company looked forward to putting its case before the authority in the weeks ahead.
He added that they expect the authority to come to a timely and satisfactory conclusion in relation to the proposed takeover of B&C &and they would continue to cooperate fully with the authority.
Heineken believes there are significant synergies to be gained by integrating key brands, such as Beamish Stout and Miller into its own portfolio of alcoholic drinks.
Many publicans and other players in the market fear the emergence of a duopoly if the deal goes through.
A B&C spokesman responding to yesterday’s announcement said “the company will continue to cooperate fully with the Competition Authority in the second phase of its investigation”.
Heineken Ireland employs 425 people, while B&C has some 160 staff.
Although B&C is refusing to comment openly on the investigation, there have been suggestions that current management would consider buying the business if the Heineken deal is ultimately blocked.
