Brussels, 26/10/2001 (Agence Europe) - The European Commission has cleared the planned acquisition of German brewer Beck's GmbH by Interbrew SA of Belgium. Interbrew brews, markets and supplies beer in the Americas, Western, Central and Eastern Europe and Pacific Asia. Beck's brews and markets beer in Germany, Eastern and Central Europe, the UK, the US and around 120 other countries; and produces and markets non-alcoholic drinks in Germany and container glass for the German market. The two companies' activities overlap, but the Commission feels that the transaction did not run the risk of strengthening or creating a dominant position, even in the UK, where considerable concerns had been raised since the acquisition would give rise to the risk of collusion between Scottish and Newcastle and Interbrew, two of the biggest brewer and distributors of Beck's beer. But Interbrew has agreed to a specific amendment to the agreement with Scottish and Newcastle on the distribution of Beck's in the UK. The Commission has not given any details about the amendment, but signals that it removes any potential concerns.
Following the UK competition authority's adverse finding in relation to Interbrew's acquisition of Bass in the past (Interbrew appealed), Interbrew won the right to buy up Bass as long as it sells the Carling brand or Bass breweries business (see EUROPE of 5/6 January 2001 and 21 September, p.18). Whichever remedy is implemented, the acquisition of Beck's does not give rise to concerns, signals the Commission.