Brussels, 22 August 2000
Commission refers Interbrew/Bass merger to the UK competition authorities
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. Both
companies are active in the supply of beer, where possible dominant positions could be found.
Under the EU Merger Regulation, the Commission has sole responsibility for examining all
mergers above a certain size (on the basis of turnover) in order to assess their compatibility with
the common market. However, the regulation recognises that where a merger's effects on
competition in the EU are likely to be confined to distinct markets within the territory of a
Member State, it may be more appropriate for the case to be dealt with under the national
competition law of the Member State concerned. Consequently, Article 9 of the regulation
provides, that on request from a Member State, the Commission can refer a merger to that
Member State for investigation under national competition law if it threatens to create or
strengthen a dominant position which would substantially reduce competition in a distinct market
within the Member State's territory.
In the present case, the UK informed the Commission that it had identified a number of markets
within the UK for the supply of beer in which the UK authorities considered that the conditions
for such a reference were met. In particular the UK consider that the combined strength of
Interbrew and Scottish and Newcastle could give rise to the risk of a harmful duopolistic
outcome. The Commission agrees and has decided to exercise its discretion to refer the case to
the UK in recognition of two facts. Firstly, the UK authorities are currently investigating
Interbrew's acquisition of Whitbread's brewing interests. Secondly, the UK authorities have the
benefit of a number of recent investigations into the UK beer industry, the most recent of which
is the OFT's review of the Beer Orders. The Commission therefore considers that the UK is bestplaced to carry out the necessary further examination of the case. The UK now has a maximum
of four months in which to deal with it.
The referral to the UK authorities only relates to those parts of the deal which affect the UK beer
sector. Separately, the Commission has cleared those parts of the deal which relate to the supply
of beer outside the UK, and to the supply of Flavoured Alcoholic Beverages both in the UK and
elsewhere as no competition considerations arise as a result of the merger in these markets.