THE COMPETITION Authority announced yesterday that it is elevating its inquiry into the intended takeover by Heineken of rival brewer Beamish Crawford.
The authority initiated a phase one inquiry into the proposed takeover in April. The phase two inquiry announced yesterday must reach a decision by November 3rd at the latest.
The vast bulk of proposed mergers examined by the authority are approved at the phase one stage. The majority of the approximately 18 phase two cases initiated in recent years have resulted in approval.
A spokesman for Heineken said it noted the decision of the authority and that the company was satisfied a satisfactory and timely outcome would emerge.
A spokesman for Beamish Crawford said the company "will continue to co-operate fully with the Competition Authority in the second phase of its investigation".
A spokeswoman for the authority said she could not comment on the matter.
Interested parties have been invited to make submissions before August 21st next.
The proposed takeover of Beamish Crawford is part of a joint £7.8 billion (€9.9 billion) takeover by Heineken and Carlsberg of Beamish parent Scottish Newcastle (SN).
The takeover has been approved by the European Commission and has gone ahead, but the Irish aspect of the deal was referred to the Competition Authority. Carlsberg of Denmark and Heineken of Holland came together for the purpose of the takeover, and are dividing up the elements of SN between them.
The three main brewers in Ireland are Diageo, Heineken and Beamish Crawford. Heineken brews Murphy's stout, Heineken and Coors. Diageo brews Guinness, Harp, Carlsberg and Budweiser. Beamish Crawford brews Beamish, Miller, Fosters and Carling.
The Vintners' Federation of Ireland has expressed concern about a potential reduction in competition in the beer market if the deal goes ahead.
However, defining the market is one of the matters the authority will have to decide on. Heineken is understood to be arguing a larger entity would be better able to compete with Diageo, which has about half of the market, and so the deal would enhance competition.
Beamish Crawford employs about 160 people, while Heineken employs more than 400. Both companies are based in Cork.
