The acquisition of bass by interbrew should not be allowed

The EU investigation is continuing, although Interbrew claims to have left its murky past behind. Lehman was not retained as an adviser for the public offering - Interbrew chose Merrill Lynch instead. The company wanted to go earlier, in order to raise cash for further acquisitions.

Even before the Trade Mark Registration Act, trademarks had some protection in law. Competing brewers would find it hard to match these distribution systems, reducing competition to pub-retailers which did not have distribution systems of their own and to the independent free trade.

Further, disposal of Bass Brewers would leave Interbrew owning and managing its main brand, and would make Whitbread Brewing Company, owned by Interbrew, a stronger competitor than it would be as a stand-alone business.

Bass Acquisition Brews up a Storm

They believed Bass Brewers to be a viable business which could be disposed of without complications. This was the remedy originally recommended by the Competition Commission and the DG.

By Marketing Week 2 Nov It is complicated by the fact that the British Government may appeal against the judgment. Activities of the Parties Interbrew is a large Belgian company.

Interbrew tactics cripple Bass deal

And the Belgian giant is loath to get rid of either. One industry insider says: The acquisition was subsequently referred to the Competition Commission for investigation. Anheuser-Busch Anheuser-Busch is the largest brewing company in the United States and employs over 30, people.

The divestment of Whitbread Brewing Company was felt not to be an adequate remedy by three members of the panel. Hugo Powell, Interbrew's chief executive, has consistently argued that the ruling was "disproportionate to the competition issues at stake".

Commission refers Interbrew/Bass merger to the UK competition authorities

Interbrew After the merger inInterbrew acquired a number of local breweries in Belgium. The licence which Whitbread Brewing Company currently holds in respect of Stella Artois would force Interbrew to develop another premium lager, possibly licensed.

It would be unlikely that Interbrew would use a licensed brand to compete with a brand from which it receives a royalty stream. It was the world's largest brewing company based on revenuebut third in brewing volume, before the acquisition by InBev announced 13 July The materials contained on this website are for general information purposes only and are subject to the disclaimer.

The first transaction in this phase took place in Hungary, followed in by the acquisition of Labatt, in Canada, and then in by a joint venture with Sun in Russia. His cause was taken up by Belgian economics minister Charles Picque.

EU commissioner Mario Monti says: Bass retained its estate of managed pubs, which trade as Bass Leisure Retail. Anheuser Busch Company also owns a soft drinks business that has bottling contracts with PepsiCo through its subsidiary, Ambev.

The materials contained on this web site are for general information purposes only and are subject to the disclaimer.

Disposal of Bass Brewers was the remedy chosen by three of the panel members. In the alternative Interbrew might use its influence to discourage Whitbread Brewing Company from competing vigorously via Stella Artois with its own licensed premium lager.

Interbrew ignored advice to delay flotation

Alternatively, the fair trading watchdog said, "some other appropriate brand combination" could be sold instead. Next Steps In response to a Competition Commission report and the advice of the director general of fair trading, the UK government is requiring Interbrew SA to divest the recently acquired Bass Brewing business.

The Burton Unions were abandoned in the early s, but even 20 years ago, Michael Jackson could write: However, it was found that sunk costs would be low due to the possible alternative uses of the assets involved. Molson Coors also retained "the rights to all of the brands currently in the MillerCoors portfolio for the U.

It would have raised net wholesale and ultimately retail prices; It would have increased non-price competition in the form of advertising and marketing, resulting in increased barriers to entry and expansion and a somewhat greater degree of brand rationalization than would otherwise have been the case; It would have allowed Interbrew and Scottish and Newcastle to promote their own brands; and It would have made the independent free trade and independent wholesalers less competitive.

Prior to the Whitbread Brewing Company acquisition, Interbrew's involvement in the UK beer market was primarily through a licence agreement with Whitbread to brew and distribute Stella Artois.Merger Assessment in Oligopolistic Markets: Lessons from Interbrew/Bass by Lorenzo Coppi* and Paul W. Dobson** December Abstract This paper considers the.

Secretary of State on 3 Januarywhich vetoed Interbrew’s proposed merger of the UK brewing operations of Bass Brewers and the Whitbread Beer Company, and required the company to divest the UK beer business of Bass Brewers.

On 2 FebruaryInterbrew applied in the UK for a judicial review of this decision in the High Court of Justice. Commission refers Interbrew/Bass merger to the UK competition authorities.

Anheuser-Busch InBev

The European Commission has decided to refer the proposed acquisition by the Belgian company Interbrew SA of the brewing and distribution assets currently owned by the British company Bass to the United Kingdom competition authorities for investigation.

May 24,  · Interbrew's lawyers can now be expected to argue that the company should be allowed to dispose of the Whitbread brewing business, acquired last year for £m, rather than Bass.

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There was considerable surprise in the City that Interbrew proceeded with its flotation despite the risk of regulatory intervention in the £bn acquisition of Bass's beer operations.

– Interbrew grows further by the acquisition of Whitbread’s brewing division and Becks lager. The UK Monopolies & Mergers Commission orders Interbrew to sell Bass .

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The acquisition of bass by interbrew should not be allowed
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