Argentina: Government orders ‘trading’ of beer brands to avoid market concentration

Argentina’s Secretary of Trade, Miguel Braun, has announced certain changes to the national beer sector “To avoid the increase in market share of AB Inbev, which would have affected the competition …”, referring to the merger of the two global beer giants, SAB MIller and AB Inbev (owner of the well-known brand Quilmes).

“If the operation had been approved without conditions, the participation of AB Inbev’s brands could have reached up to 85% of the market … the conditions are meant to remedy the negative effects for consumers” said the Ministry’s statement.

Therefore, the National Commission for the Defense of Competition now requires the sale of seven brands by AB Inbev, while the Multinational’s flagship brand, Budweiser, would return to their Argentine portfolio after paying USD$400 million to end a current licensing agreement with its local rival, CCU Argentina, which will in turn gain the brands Isenbeck, Iguana, Diosa, Norte and Baltica.

Full Content: Info Bae

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.