E-Malt.com News article: 288

Bavaria, the Colombian brewing group, has declared that it has formally renounced the attempt to acquire Cervecerias Baru Panama S.A., Panama’s second largest brewer, a deal put on in May 2002.

This is the only alternative of Bavaria group followed by the decision of Panama's Free Competition and Consumer Affairs Commission. The Commission explained that Bavaria takeover would inhibit competition and would cost Panamanian consumers up to US$23mln a year in higher beer prices. If the deal had occurred Bavaria group would have become a beer monopolist in Panama, since Bavaria has already owned Cerveceria National, which has 70% of the country’s beer market. By buying Cervecerias Baru Panama SA, which controls the other 30% Bavaria would have definitely created a beer monopoly in Panama.

However, Bavaria said it would continue to follow its international development strategy. The company intends to increase foreign revenues to around 50% of its total income from the present level of 23%.


11 July, 2002