With the European Commission (EC) having referred Interbrew’s £2.3 billion purchase of Bass’ beer division to the UK’s Department of Trade & Industry for competition scrutiny, Interbrew completed the acquisition of Bass Brewers. Thus in August Bass’ interest in brewing ended formally.
The deal with Interbrew was only conditional on EC approval. Interbrew has announced that it will co-operate fully with the UK authorities in their review of the acquisition of Bass Brewers. Pending that review, Bass Brewers and Interbrew UK (the former Whitbread Beer Company) will remain as separate companies. This view was voiced by Hugh Osmond, chairman of the Punch group, the UK’s leading pub operator.
In the wake of the EC’s announcement, a game of musical chairs ensued.1%..

Spanish brewer Mahou SA will buy out fellow brewer San Miguel SA from Groupe Danone in a deal worth US$281.5 million. This deal will allow Mahou to nearly double its market share from 17% to 31%. Mahou which is 33% owned by Groupe Danone announced as early as March that it wanted to buy out 70% of San Miguel from Danone. The merger is being investigated by Spain’s competition tribunal at the request of the Ministry of Economics to decide whether the deal will harm competition in the Spanish brewing Industry. A decision, which will be non-binding, is expected before October.

The Klin Brewery, in which Sun Interbrew has a 75% stake, expects to increase output to 2.0 million hl beer this year, up from 1.6 million hl last year. The production increase is partly due to a large-scale modernisation scheme valued at US$70 million, of which US$45 million will be spent this year. The modernisation and expansion scheme will bring up annual capacity to 4.0 million hl beer. Last year the Klin Brewery doubled its pre-tax profit to US$13.4 million.

... that Interbrew’s US$10 billion stock market flotation scheduled for this year may have to be postponed. Some London analysts seem to believe that a flotation was too ambitious a move while the company’s deal to buy Bass’s and Whitbread’s brewing interests was still reviewed under the provisions of the UK’s Fair Trading Act. Interbrew officials played down speculations that the float would have to be postponed.

Scottish&Newcastle has reorganised its board. Brian Stewart, CEO and deputy chairman, has become chairman and Guy Dickson, formerly head of the beer business, group managing director. Sir Alistair Grant remains with the company as deputy chairman. Frank Riboud, CEO of Group Danone, has joined as non-executive director.

It is believed that Interbrew will dispose of the Tennent’s Lager brand, Scotland’s major brand, for up to £250 million to appease the competition watchdogs. Interbrew has denied the speculation, saying that it would definitely keep the lager brand.

Haendler & Natermann GmbH, Hann. Münden, and Goetz + Müller GmbH, Berlin, Germany, will invest 3 million DM in the first production stage of a joint paper and aluminium label plant in St. Petersburg. As of late autumn, sales will commence to a large Russian brewery and international groups.

In 1999, Hungary produced 7 million hl (+0.4%) of beer. The five breweries belonging to the Hungarian Brewers’ Association have a joint market share of 96%. According to estimates, Dreher has a 30.5% market share, Borsodi has 29.8% and Brau Union Hungaria 25.3% or 1.756 million hl (+6%).

Ulrich Kallmeyer, 55, has been appointed CEO of Binding-Brauerei AG, Germany’s number three brewing group. Before joining the Frankfurt brewer, he was Managing Director Controlling and Finances at Henkell & Söhnlein Sektkellereien, Wiesbaden. He succeeds Klaus Peter Erbrich, 66, who retired from the post to become the chairman of the supervisory board of Binding-Brauerei AG.

South African Breweries plans to merge the three Czech breweries (Pilsener Urquell, Radegast and Velke Popovice) which it controls into one company named Pilsner Urquell. Radegast and Velke Popovice will shut down operation, without being liquidated.