A competition watchdog in Brazil has recommended that the country's main anti-trust regulator should approve the merger of AmBev and Interbrew. The Justice Ministry's Economic Rights Secretariat (SDE) said in a statement yesterday that the deal would not compromise competition in the country's beer market.

Earlier this month, the country's second biggest brewer after AmBev, Schincariol, filed a request with Brazil's anti-trust authorities asking them to suspend the deal as it would harm competition in the country.

The watchdog recommended, however, that the Administrative Council of Economic Defense (CADE) should approve the US$11.5 bln deal without conditions.