AUS: Competition Commission okays SABMiller Foster’s Group purchase
SABMiller has cleared one of the legislative hurdles to its purchase of Foster's Group
The proposed purchase, announced last week, will also see SABMiller become legally entitled to buy Coca-Cola's 50% share in its Australian beer JV, Pacific Beverages, which was set up in 2006. The commission reviewed the Foster's buy to ensure there were no competition concerns.
“The ACCC has formed the view that the proposed acquisition is not likely to result in a substantial lessening of competition for the supply of beer,” said ACCC chairman Rod Sims yesterday (27 September).
The commission concluded that the removal of Pacific Beverages as an independent beer producer and supplier would be unlikely to raise substantial competition concerns. “The evidence suggests that Pacific Beverages is not a significant force in the Australian beer market and other competitive constraints will continue to operate on a merged SABMiller/Foster’s,” Sims added.
The new SABMiller Foster's entity will retain Foster's market leadership status in Australia, followed by Lion Nathan.
Australia's Foreign Investment Review Board is also considering SABMiller's proposed acquisition, to ensure that it adheres to foreign investment policy and is not contrary to Australia's national interest.
To read the official ruling, click here.
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