Product details

This is the second of a two-case series (203-001-1 and 203-002-1). In June 2000 the Belgium brewer Interbrew acquired the UK Brewer Bass plc, giving Interbrew 33 percent of the UK beer market. The acquisition was investigated by the UK Competition Commission, which concluded that it would be expected to operate against the public interest, and that the only suitable remedy was for Interbrew to divest Bass. Interbrew strongly objected to this decision, and won an unprecedented victory in the High Court, where it was ruled that the Commission''s procedure had been unfair. A subsequent investigation by the Office of Fair Trading resulted in another remedy, the sale of the Carling brand, being adopted by Interbrew in December 2001. Case (A) is primarily intended to illustrate the analysis of the competitive effects of a merger, and contains the arguments made from parties in favour of, and opposed to the acquisition. The student is required to decide whether the merger is expected to act against the public interest, and if so, to decide on an appropriate remedy. Case (B) describes what happened following the initial investigation. The cases provide an opportunity to explore the factors that influence merger decisions by anti-trust authorities, and the dynamics of the process associated with the investigations.