Czech Republic: Czech Antitrust Body approves Krusovice takeover by Heineken

Czech antitrust office UOHS said it has approved the takeover of Czech Krusovice Brewery by Heineken NV (HINKY), paving the way for the Dutch brewer to boost its Czech market share and add a local premium brand, Dow Jones & Company, Inc. reported August 7.

Heineken currently operates in the Czech market through its Austrian subsidiary Brau-Union AG. After the Krusovice takeover, Heineken's market share will be 8% from 5% currently.

It is buying Krusovice, locally known as the Royal Brewery of Krusovice founded in 1517, from German Radeberger Gruppe KG brewer.

Krusovice currently accounts for about 3% of domestic beer sales and brews some of the oldest Czech beer brands.

No financial details of the transaction were disclosed.

The Czech domestic beer market is dominated by Plzensky Prazdroj, a local unit of SABMiller PLC (SAB.JO), and Pivovary Staropramen AS, a unit of InBev (INB.BT).

With its latest acquisition Heineken is set to become the Czech market's fourth-largest brewer, after state-owned Budejovicky Budvar NP. Heineken already holds a significant Slovak domestic market share.

08 August, 2007