OFT to run rule over C&C Tennent’s deal

The Office of Fair Trading (OFT) is investigating C&C Group’s recent acquisition of the Tennent’s lager brand in order to establish whether the deal could have a detrimental effect on competition within the UK drinks market.

C&C Group struck a £180m deal with drinks giant AB InBev in August to acquire its businesses in Ireland, Northern Ireland and Scotland, which included the Scottish lager brand.

Now the transaction, which C&C Group maintains cannot be reversed despite the OFT investigation, is under the microscope.

The OFT said in a statement to the stock exchange: “Should it be found to be a relevant merger situation, the OFT will further consider whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods and services that warrants reference to the Competition Commission for investigation and report.”

The OFT will be receiving submissions until 19 October, which can be to: Marie Didierlaurent, Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square, London, EC4Y 8JX. Alternatively, email marie.didierlaurent@oft.gsi.gov.uk or fax +44 (0)20 7211 8916.

Alan Lodge, 07.10.2009