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Distell demands South Africa review of alleged Anheuser-Busch InBev merger breach

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South Africa's competition authorities have revealed Distell is seeking a review of an investigation into alleged breaches by Anheuser-Busch InBev of its merger conditions with SABMiller.

Distell alleges that A-B InBev has breached conditions of its merger with SABMiller in 2016

Distell alleges that A-B InBev has breached conditions of its merger with SABMiller in 2016

The Competition Tribunal said yesterday Distell has accused A-B InBev of breaking certain clauses in the merger, which regulators approved in 2016. A recent investigation into the allegations by the Competition Commission found the conditions had not been breached. However Distell now wants that investigation to be reviewed by the Competition Tribunal.

In a statement yesterday revealing Distell's request, the tribunal said A-B InBev's South African unit, SAB, has defended itself against the allegations, arguing that they are an attempt to restrict competition and are unrelated to the merger conditions.

The tribunal said that Distell had participated in the hearings over the merger in 2016 and "made substantial submissions". 

A hearing will be held today and tomorrow.

This week, SAB was cleared by the Competition Tribunal to produce Guinness for Diageo in South Africa. The unit is taking on a licensing deal for the Guinness brand and Diageo's Smirnoff RTDs.

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