TWO MULTINATIONALS are set to carve up the Irish draught beer market after the State's monopolies watchdog yesterday allowed Heineken to take over Beamish Crawford.
The Competition Authority yesterday gave Dutch giant Heineken NV the go-ahead to take over Cork city-based Beamish Crawford following an inquiry that lasted six months.
The takeover is part of a €10.5 billion joint bid by Heineken, which also owns a brewery in Cork city, and rival Carlsberg for Beamish Crawford's parent, British brewer Scottish Newcastle.
Under the deal's terms, Heineken gets the British player's Irish business, made up of Beamish stout and its sister products.
The scale of the parties involved meant that the sale had to be referred to the Competition Authority when it was agreed last March.
There were fears about competition in the Irish market as Heineken owns the largest-selling lager in the Republic, and along with Scottish Newcastle, is one of two large rivals to Guinness parent Diageo in the pub trade.
It will also bring the two rivals to Guinness in the stout market, Murphy's and Beamish, under the Heineken umbrella.
The takeover means that two multinational brewers will control most of the main draught products on sale in Irish pubs as Diageo has a licence to brew Carlsberg from the brand's Danish owner.
Announcing its decision yesterday, the Competition Authority said it believed "the result of the proposed acquisition by Heineken NV of Beamish Crawford plc will not be to substantially lessen competition in markets for goods and services in the State".
Gerrit Van Loo, managing director of Heineken Ireland, welcomed the decision yesterday, and said the Beamish brands would complement the Dutch brewer's portfolio. "We are fully committed in Heineken Ireland to an integration process, which ultimately will benefit both our customers and consumers."
There is speculation that Heineken may ultimately amalgamate the two operations on to one site.
Beamish and Crawford managing director Alf Smiddy briefed the company's 200 workers on the decision yesterday.
Mr Smiddy described the deal as a defining moment for the company, Ireland's longest established brewer, and said it would create a strong force in the Irish beer market. "We will follow up with more detailed communications to staff on Monday," he added.
