E-Malt.com News article: 1330

Under the decision made by Slovenia's Competition Protection Office (CPO), Pivovarna Union's largest shareholder, its competitor Pivovarna Lasko, is allowed to use its 48% shareholding in Union (Interbrew owns 42% of Union shares). The decision fails to take into account the connections between Lasko and other Union shareholders, which own a further 8% of Union shares and are connected to Lasko. Also, CPO decision provides that, should concentration be proven in the future, the then applicable remedies would allow Lasko to retain full ownership and control of over 90% of Slovenia's brewing capacities and brewer-owned distribution and commercial assets.

Interbrew, The World's Local Brewer©, notes that CPO has not fully investigated the links between Lasko and its broker Cogito and food processor Perutnina Ptuj, in which Lasko is a large shareholder. The combined shareholding of Lasko, Cogito and Perutnina Ptuj amounts to 56% of Union's shares. Therefore, such a link will continue to provide Lasko with all means to exercise de facto control over Union. CPO's decision, as it currently stands, allows such control to also become legally valid.

Therefore, CPO's decision leaves the future of Pivovarna Union unclear and uncertain. This decision is a threat towards the very existence of Pivovarna Union as an independent leading Slovene company, and towards the job security of its workers. Furthermore, CPO decision constitutes a precedent that contradicts Slovenia's and the European Union's policy of securing competitive market environments across all industries, and which is key to ensure long term benefits to Slovene consumers.

Throughout the process of acquiring Pivovarna Union, Interbrew has always acted transparently and in compliance with the relevant Slovene legislation. Interbrew will further study the full implications of the 60 page long CPO decision and will take all necessary steps to protect its investment in Pivovarna Union. Interbrew continues to believe that it can play a leading role in the Slovene beverage industry, and will seek to find solutions with all parties involved to that end.


18 July, 2003