Asahi's $16bn buyout of CUB given greenlight
Asahi’s $16 billion takeover of Carlton & United Breweries (CUB) has been given the tick of approval by the Australian Competition and Consumer Commission (ACCC).
CUB currently holds close to 49 per cent of the $14 billion beer market in Australia, with brands including Victoria Bitter, Carlton Draught, Great Northern. It also makes Crown Lager and Pure Blonde.
The Japanese beverage giant will now set up a separate division to oversee the sale of three cider brands, including Strongbow, and the Australian rights to beer brands Stella Artois and Beck's.
The approval by the ACCC came with a warning it will strictly enforce undertakings given by Asahi that the buyers of the brands being divested will have the same access to shelf space at retailers and on-tap arrangements at pubs, clubs and bars as Asahi has now for the next three years.
ACCC chairman Rod Sims said the divestments were necessary as without them the acquisition would see competition in the cider market reduced and "remove a vigorous and effective competitor in the beer market''.
The deal still requires the approval of the Foreign Investment Review Board, while the ACCC will need to ratify any future buyer of the brands being sold off.
Sheridan Randall, 2nd April 2020
