South Africa’s Competition Commission has approved Heineken’s takeover of Distell if it meets certain conditions.
Last November, brewing giant Heineken agreed to buy a 65% stake in South African drinks group Distell for €2.2 billion (US$2.5bn), excluding the Scotch whisky business.
Heineken agreed to purchase Distell’s flavoured alcohol beverages (FABs), and wine and spirits operations, with the exception of certain spirit brands, as well as Namibian Breweries.
The Distell brands that will be excluded from the Heineken deal include Scotch whisky brands Black Bottle, Bunnahabhain, Deanston, Scottish Leader and Burn McKenzie, as well as gin brands Gordon’s and Tobermory.
South Africa’s competition regulator has now recommended that the Competition Tribunal approve the merger subject to conditions.
The Commission found that the agreement would likely prevent or lessen competition in the FABs and cider market as the merged company will be a dominant supplier of FABs, with a market share above 65%, and would be the largest supplier of ciders in the country.
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