E-Malt.com News article: 2709

Brazil: The Brazilian Finance Ministry's SEAE competition watchdog on May 27 recommended Interbrew's planned acquisition of 54.4 % of Brazilian brewer AmBev be approved without restrictions. Schincariol, Brazil's No.2 brewer behind Companhia de Bebidas das Americas (AmBev), had filed a request with Brazilian antitrust authorities asking them to suspend the deal on the grounds it would hurt competition in Brazil, according to Reuters.

The ministry's SEAE competition body said the Justice Ministry, which runs Brazil's main anti-monopoly body, the Administrative Council of Economic Defense (CADE), should allow the deal to go ahead because the Belgium brewer sold only a small amount of beer in Brazil. "After the operation, the joint (market) share of the applicants will be 67.001 percent, being that the 0.001 percent represents Interbrew's stake in the Brazilian beer market," the SEAE said in a statement.

Interbrew and Companhia de Bebidas das Americas (AmBev) said on March 3 that they would merge operations to create InterbrewAmbev, the world's No.1 brewer by volume, surpassing Anheuser-Busch Cos. Inc. (nyse: BUD - news - people). The union would bring heavyweight brands like Stella Artois, Beck's, and Skol under the same roof.

The CADE has yet to approve the sale, but earlier this month its president told a Congressional hearing on the protection of consumer rights that the $11.5 billion tie-up did not appear to pose a threat to the current competitiveness of the market.

AmBev controls about two-thirds of the Brazilian beer market. Its main rivals are privately owned Schincariol and Kaiser, owned by Canadian brewer Molson Inc..

The company's shares gained 1.4 % on May 27 to close at 577 reais. Brazil's benchmark Bovespa stock index gained 3.5 % during the session.


31 May, 2004