With CUB now safely in Asahi’s hands, a competition assessment conducted by the ACCC shows it allowed the sale despite Asahi having a significant impact on competition.
The Foreign Investment Review Board has removed the last barrier to Asahi’s acquisition of CUB as details of the nature of competition for tap contracts emerges.
Tap contract controversy was reignited following the ACCC’s approval of CUB-Asahi deal last month, so we spoke to UNSW professor Rob Nicholls about the changed competition landscape and what this might mean if the IBA decides to take up the gauntlet.
The ACCC will not oppose Asahi’s acquisition of CUB after Asahi undertook to divest two of its beer brands and three of its cider brands.
It’s the penultimate episode of Brews News Week for 2019. In the news: ACCC raises competition concerns over Asahi-CUB deal and Malt Shed owners put brewery up for sale.
The ACCC has announced that it has concerns about competition in the beer and cider markets regarding the proposed acquisition of CUB by Asahi.
The ACCC is seeking industry views about the impact on competition in the beer market as a result of Asahi’s proposed purchase of Australia’s largest brewer, CUB.
If the CUB-Asahi acquisition goes ahead, 70 per cent of the cider market will belong to one company, says industry body Cider Australia, as it calls on the ACCC to closely consider the deal.
Not all small brewers have joined in the outpouring of anger at the ACCC’s finding tap contracts do not substantially lessen competition.
ACCC Deputy Chair Michael Schaper spoke with Brews News to explain the ACCC’s decision that a court was unlikely to find that tap contracts amounted to a substantial lessening of competition…