Interbrew deal for Beck's raises competition questions
British competition authorities are expected to look into a takeover of German brewing giant Beck's by Belgium's Interbrew.
The £2.2bn deal for Germany's fourth largest brewer means that Interbrew now owns Britain's third biggest-selling premium packaged lager (PPL).
This could present problems because the Belgian company already owns the number one PPL in the UK, Stella Artois.
Stuart Price, an analyst for broker WestLB Panmure, said: "There remain potential regulatory questions in the UK."
However, Scottish & Newcastle (S&N) will continue to handle the brand in the UK because of a agreement due to run until 2012.
"Our contractual agreements over Beck's brands are long term and quite secure, so this acquisition has no impact on those," a spokeswoman for S&N said.
S&N, which launched a £5m press and poster advertising campaign for the brand this summer (pictured), admitted last month that it considered making a bid for the German brewer.
Interbrew has already come up against the Government and the Competition Commission over its acquisition of Bass Brewers and Whitbread Beer Company. A decision is expected later this month.
Interbrew has not commented so far on the competition issues over Beck's in the UK market.
Brauerei Beck & Co produces more than 5.5 million hectolitres of lager a year and exports about 60 per cent of it, mainly to the United States.
Globally, Interbrew will now be number two in the premium lager market after Heineken. With Stella Artois and Beck's combined, it will have 10 per cent of the global market.
Interbrew chief executive Hugo Powell said: "Beck's provides an excellent fit with our strategy of acquiring and developing strong brands in local markets."
The deal is also subject to approval by Beck's shareholders as well as the German and European regulatory authorities.
Related stories:
Bidding war looms for Beck's (July 20, 2001)
ScotCo invests in Beck's ad campaign (June 6, 2001)
