E-Malt.com News article: 2455

Brazil's second-largest brewer, Schincariol, filed a request with antitrust authorities on April 1 asking them to suspend a merger deal between its main rival, AmBev, and Belgium's Interbrew. AmBev and Interbrew announced last month they planned to merge operations in an $11.5 billion agreement to create the world's largest brewer in terms of volume, according to Reuters and The National Post. The deal has yet to be closed and needs approval from Brazilian and Belgium authorities.

Schincariol said in a statement the accord could hurt local competition. "The operation being studied increases the viability of AmBev engaging in predatory practices in the market by creating a company with an unimaginable potential for cash flow," Schincariol said. AmBev's press office said the company had been expecting the complaint and said it was ready to respond to any queries by authorities.

Because Interbrew had an almost negligible presence in Brazil before the deal was announced, analysts generally expect antitrust authorities to approve it.


06 April, 2004