HEINEKEN ITALIA/BIRRA MORETTI (Start of full phase investigation)
PRESS RELEASE
The Italian Competition Authority has initiated a proceeding to verify if the acquisition by Heineken Italia of Birra Moretti is likely to create or strenghthen a dominant position in the market for the production and distribution of beer, in such a way as to eliminate or reduce competition substantially and on a lasting basis.
In particular, the merger consists in the acquisition of Birra Moretti's equity capital.
The Italian beer market is characterized by a high level of concentration and by a total consumption which is substantially stationary. In Italy, the per capita consumption is about 25 litres per year and, as such, is absolutely the lowest within European Union. Total sales amount to 1,800 billion lira (1.80 US billion $ approx.). The structure of supply is particularly concentrated: in fact, the first three brewers - including Heineken and Moretti - cover altogether approximately 70% of the whole market. Following the merger, the Heineken Group would become the main brewer in the Italian market with a share of about 38% and would pass the Peroni Group, by a narrow margin.
Considering the existence of high barriers to entry in the beer sector, the Authority decided to initiate an investigation, which is to be concluded within 45 days of the commencing of the proceeding.