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EU approves Heineken purchase of some Scottish and Newcastle assets

03 April 2008, 16:07 CET

(BRUSSELS) - The European Commission approved on Thursday Dutch brewer Heineken's purchase of Scottish and Newcastle's businesses in Belgium, Britain, Finland and Portugal.

However, it referred Heineken's purchase of Scottish and Newcastle's assets in Ireland to competition authorities in the country following a request from them to review the deal.

Although Europe's top antitrust watchdog saw no threat from the deal to competition in Belgium, Britain, Finland and Portugal, the commission said there was a risk in Ireland.

Scottish and Newcastle accepted in January a 7.8 billion pound (9.9 billion euro, 15.5 billion dollar) takeover bid by Carlsberg of Denmark and Heineken of the Netherlands.

Under the deal, Carlsberg and Heineken are to split the Scottish and Newcastle's assets between them.

Carlsberg will take Scottish and Newcastle's half of their joint Russian venture Baltic Beverages Holding, which makes Russia's Baltika beer, and its Chinese, French, Greek and Vietnamese operations.

Heineken, meanwhile, will take the businesses in Belgium, Britain, Finland, India, Ireland, Portugal and the United States.

The commission approved the Carlsberg's part of the deal on March 7.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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