The Australian Competition and Consumer Commission has announced that it won't oppose AB InBev's acquisition of SABMiller.
The ACCC said it considered that the proposed acquisition would be unlikely to result in higher beer prices for consumers.
The ACCC also said it had been concerned about Lion's distribution deal with AB InBev in Australia, which, post-merger, may have increased the ability and incentive for coordination between Lion and the merged entity.
However this was no longer a concern the regulator said, because AB InBev had served notices to terminate agreements with Lion (subject to certain notice periods) for the distribution of Corona and other AB InBev brands in Australia.
ACCC Chairman Rod Sims said: “The ACCC found that the proposed acquisition would not significantly change the current market structure. The two largest suppliers of beer in Australia are Lion and SABMiller, which owns Carlton & United Breweries (CUB).
“While AB InBev’s brands have been successful in Australia, particularly Corona, they have previously been distributed via either Lion or CUB. AB InBev has only a limited direct company presence in Australia and does not brew beer here.”
“The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers,” Sims said.
AB InBev, the world’s largest brewer, is headquartered in Belgium, but it does not operate any breweries in Australia. Instead it uses Lion as the main distributor for its brands which include Corona, Stella Artois, Beck’s and Budweiser.
SABMiller is a London-based multinational brewing and beverage company and is currently the second largest supplier of beer in Australia, after Lion. It operates through its local subsidiary Carlton & United Breweries, and its main brands include Victoria Bitter, Carlton and Crown Lager.
