Ecuador: Heineken warns of beer monopoly brewing

Spokesmen for the Dutch beer giant Heineken in Ecuador spoke out, saying they consider the merger between Cervecería Nacional (owned by SAB Miler) and Ambev (owned by Anheuser-Busch InBev), which recently received a green light by the country’s competition regulator SCPM – but which has yet to be pushed through – would result in a complete monopoly, in control of 96 to 97% of the country’s beer market.

José Javier Jarrín, legal counsel for Heineken, has said the company does not oppose the merger per se, but considers that the conditions for approval should be reviewed. Mr. Jarrin pointed out that under current terms, few economic actors would find the Ecuadorian market attractive.

Mr. Jarrin continued citing cases around the world where similar mergers were accompanied by divestments of up to 49% of assets, in order to safeguard a competitive playing field – a point Mr. Jarrin urged the country’s regulators to consider.

Full Content: América Economía

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