Switzerland: Swiss probe market dominance of Heineken and Carlsberg

Swiss authorities are examining Heineken's takeover plans for Swiss brewer Eichhof Holdings, saying Switzerland faced the possibility of a having its beer market dominated by two major players, Reuters reported May 30.

Swiss competition board WEKO said that the Heineken/Eichhof group alongside rival brewer Feldschloesshen, owned by Denmark's Carlsberg, risked dominating the Swiss beer market.

The Swiss beer market will have fallen largely into the hands of large foreign players following Heineken's April bid, valued at 278.5 million Swiss francs ($267.3 million), for Eichhof. The bid remains subject to regulatory approval.

WEKO said it would launch an extended review of the impact of Heineken's takeover plans on the beer market that would last around four months.

"The examination of the merger will seek a deeper clarification to questions about the stability and the sustainability of a possible collective market-dominant position," WEKO said.

Eichhof's beverage division makes beers, non-alcoholic beverages and wine and had domestic beer volumes of 361,000 hectolitres in 2007.

03 June, 2008