E-Malt.com News article: 148

There are four potential remedies concerning Bass Breweries after the acquisition by Interbrew, the UK’s OFT (Office on Fair Trading) has announced.



First remedy: Interbrew will sell all of Bass Breweries to the buyer approved by the OFT. In this case Interbrew will remain with 10% of the UK market, Scottish and Newcastle and Bass Breweries each with 25% and Tetley with 12%. This solution was previously recommended by OFT and the UK Competition Commission.



Second “Carling Brewers remedy”: Interbrew will keep Bass Breweries in Scotland and Northern Ireland, together with the Tennent’s and Bass ale brands. The remainder of Bass Breweries will be sold to an approved buyer. In this case Inerbrew remains with 15% market share; Scottish and Newcastle – 25%; Carling Breweries – 19% and Carlsberg-Tetly – 12%. OFT called this solution as “might be capable of addressing the adverse effects.”



Third “International Brewer remedy” proposed by Interbrew: Interbrew will sell Bass’s Scottish and Northern Irish businesses, including the rights to Tennent’s, Grolsch, Caffrey’s, Worthington and Stones brands and keep Carling, Bass ale, some other minor brands and some brewing capacity. This remedy will leave Interbrew with 24% of the UK market.



Fourth “Whitbread Brewing company remedy”: Interbrew will sell the former Whitbread beer business to an approved buyer, including the license to brew Stella Artois in the UK. Concerning this solution, OFT consider that the Whitbread business would become “significantly weaker” force than when owned by Interbrew”.



Third parties are invited to comment on the proposals by 18 July.



The OFT said it beloved to make a formal recommendation to the trade and industry secretary, this month, but the government’s deliberations could extend beyond this.


08 August, 2001