Carlsberg not expecting delay in Heineken competition review

By Neil Merrett

- Last updated on GMT

Related tags: Newcastle brown ale, European union, Heineken

Carlsberg says it does not expect any delays in obtaining full
regulatory support for its planned joint purchase of brewer
Scottish & Newcastle (S&N), despite an on-going review of
its purchase partner Heineken by the EU competition body.

The Denmark-based brewer was last week given the go-ahead by the European Commission for its part of the buy, though must wait at least until 4 April before Heineken can possibly obtain clearance for its proposed purchase of the remaining assets. Though the brewer's half of the proposed deal, which will significantly strengthen in operations in Eastern Europe, was found not to threaten competition for beer in the bloc, Heineken still awaits regulatory approval over its own plans. However, Carlsberg spokesperson Jens Peter Skaarup told said that the separate competition commission review of both parties was standard practice and a change to the current decision deadline was not expected. "We don't expect any delays to the current acquisition plans from the ongoing review process,"​ he stated. "The deal has been structured in a way to avoid incurring regulatory concern."The acquisition ​The reviews began soon after S&N agreed back in late January to enter talks over an 800 pence per share deal for its operations. ​Acting under the entity Sunrise Acquisitions Limited, Heineken and Carlsberg have agreed to split S&N's assets, with the former, as planned, acquiring full control of the profitable Baltic Beverages Holdings (BBH) joint venture. Carlsberg said that BBH, which it had operated jointly with S&N since 2004, was a "key growth asset"​ due to its dominance in major markets such as Russia. The company will additionally take control of S&N's French, Greek, Chinese and Vietnamese operations. For its part of the deal, Heineken will gain S&N's UK, Irish, Portuguese, Finnish, Belgian, US and Indian operations in a move it says will provide undisputed leadership in European beer production. The group, as a result, will add a number of leading brands such as Strongbow cider and Newcastle Brown Ale to its portfolio.

Related topics: Carlsberg, Markets, Heineken

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