Heineken Ireland settles with Nash
The proceedings were brought by Hartside Ltd, an Isle of Man-based company, which claimed it and Heineken, then named Murphy Brewery Ireland Ltd, entered into a joint venture agreement with several other parties in November 1996 for the acquisition and ownership of Nash Beverages Ltd.
A number of ancillary agreements were also entered into including a management agreement between Hartside and Heineken and a keg delivery agreement, it was claimed.
The claims were denied.
Hartside claimed the business of the joint venture, including keg delivery and wholesale drinks distribution, was to be conducted under the joint venture terms. The intention was to manage the business in accordance with best business practice and to maximise the company’s value, it said.
It claimed Heineken breached the terms of the joint venture and the management agreement in taking steps which had the effect of advancing Heineken’s own interests and depressing the value of Nash and consequently Hartside’s interest in Nash.
Those breaches allegedly included that Heineken, whether by itself or through its nominees on Nash’s board or through the Nash general manager, had the effect of restricting the company engaging in parallel importing, preventing meaningful reform of its wholesale distribution business and failing to ensure control systems were put in place to stop stock fraud and other stock discrepancies.
It was also claimed Heineken also passed on unauthorised costs to the Nash company. Heineken is also alleged to have restricted Nash from sourcing cheaper product via parallel imports which would have increased Nash’s profits.
Hartside sought orders compelling Heineken to comply with its obligations under the joint venture.
The action was due to begin on Tuesday but Ms Justice Mary Irvine was told the matter had been settled and could be struck out.
