The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose the proposed acquisition of Foster’s Group by SABMiller, concluding that the acquisition is not likely to substantially lessen competition in the Australian market for the supply of bulk and packaged beer.
“The ACCC has formed the view that the proposed acquisition is not likely to result in a substantial lessening of competition for the supply of beer,” ACCC Chairman Rod Sims said.
The ACCC said it came to the conclusions after a thorough review process to assess how the merger would impact different facets of the beer industry, including competing breweries, supermarket retailers, distibutors, licensed venues and bottle shops.
The acquisition will mean SABMiller will wholly own both Foster’s and Pacific Beverages.
The ACCC found the removal of Pacific Beverages as an independent beer producer and supplier would be unlikely to raise substantial competition concerns.
“The evidence suggests that Pacific Beverages is not a significant force in the Australian beer market and other competitive constraints will continue to operate on a merged SABMiller/Foster’s” Sims said.
Following the takeover of Foster’s by London-based SABMiller, Coopers will become the largest Australian-owned brewer.