Tribunal to hear mergerComment on this story
The Competition Tribunal will on Wednesday hear the planned merger wherein DHN Drinks intends to acquire Sedibeng Brewery.
Sedibeng Brewery is owned by Heineken International and Netherlands-based Diageo Highlands‚ which is listed on the London and New York stock exchanges.
The proposed transaction is a restructuring of existing arrangements between Diageo‚ Heineken and Namibia Breweries in SA.
Diageo‚ Heineken International and Namibia Breweries currently all own shares in DHN and the transaction will result in their joint control of Sedibeng Brewery through their DHN shareholding.
Because it is a restructuring‚ the deal does not change the competitive dynamics in any of the markets in which the parties are involved.
The parties already jointly market‚ sell and distribute their brands of beer‚ cider and ready-to-drink beverages through a cost-sharing joint venture‚ Brandhouse‚ which was formed in 2004.
The Competition Commission has assessed the merger and concluded that it was unlikely to raise significant competition concerns. It has therefore recommended that the tribunal approve the deal without conditions. - I-Net Bridge