E-Malt.com News article: Australia: Australian Competition and Consumer Commission assessing Asahi’s purchase of Carlton & United Breweries

The Australian Competition and Consumer Commission (ACCC) is assessing Asahi’s proposed purchase (A$16 billion) of Carlton & United Breweries (CUB) which, if the deal closes, would affect more than half of Australia’s beer market, the Trailer Magazine reported on August 26.

The proposed acquisition was announced 19 July 2019 and involves Asahi acquiring CUB by way of a share acquisition.

The ACCC said in a request for submissions dated 23 August 2019 that its investigation is focused on the impact on competition, specifically: whether Asahi and CUB compete closely for the supply of beer, cider and spirits products; the likely impact on prices; and the extent to which large customers, such as supermarket chains, hotel groups or distributors, could sponsor entry or expansion by a rival supplier if the proposed acquisition were to result in a price increase.

Submissions are open until 6 September 2019. The provisional date for the announcement of the ACCC’s findings is expected to be 31 October 2019.

The ACCC is testing section 50 of the Competition and Consumer Act 2010 which prohibits acquisitions that are likely to have the effect of substantially lessening competition in a market.

The Australian Financial Review claims that a combined Asahi-CUB would likely comprise more than 50 per cent of Australia’s beer market which could make divestment for some of the smaller brands a possibility.

Asahi manufactures and sells alcoholic beverages, soft drinks and food products in Japan and internationally. In Australia, Asahi manufactures and supplies a range of international and domestic beer brands, ciders and spirits.

CUB is owned by the Belgium-headquartered, multinational brewing company AB InBev. CUB, based in Victoria, is an Australian brewing company which produces beer, cider and spirit products.

CUB operates six breweries in Yatala (Queensland), Abbotsford (Victoria), Hobart (Tasmania), Brookvale (New South Wales) and Port Adelaide and Hindmarsh (South Australia).

In other news, Linfox’s BevChain partnered with CUB to provide warehousing and metropolitan transport in Brisbane.


26 August, 2019