BRIAN KANTOR: A further case study: using competition policy to reduce competition
SA Breweries (SAB), accounting for 90% or more of the beer sold in SA, has intervened before the Competition Tribunal on the terms of Heineken’s acquisition of Distell. It argues that the tribunal should force Heineken to dispose of either the powerful Hunters or Savannah brands if it acquires Distell, rather than the less valuable Strongbow cider brand.
That is for Heineken to meet the likely competition policy objections to the deal and avoid a cider monopoly in a different way. The intended local buyer is a consortium of the craft brewer Devil’s Peak and a BEE partner. SAB argues that the consortium would lack the “relevant expertise, financial muscle or distribution network” to compete effectively in the cider market with Strongbow alone...
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