Guinness Ireland Group Ltd. / United Beverages Holdings Limited. [1998] IECA 512 (17th June, 1998)

Guinness Ireland Group Ltd. / United Beverages Holdings Limited. [1998] IECA 512 (17th June, 1998)

The Authority determined that the relevant markets are the production of soft drinks and the wholesaling of packaged beer and soft drinks, with the geographic market being the State. The Authority found that the merger would have horizontal effects in these markets but that the combined market shares of GIG and UBH would not be sufficient to substantially lessen competition. The Authority also found that barriers to entry are low, the market remains competitive, and there is no evidence that the merger would result in exclusionary effects or abuse of dominance. Accordingly, the notified agreement does not infringe Section 4(1) of the Competition Act, 1991.

Citation
[1998] IECA 512
Parties
Notifying Party / Acquirer: Guinness Ireland Group Limited; Target / Acquired Party: United Beverages Holdings Limited; Objector / Third Party: Irish Distillers Group plc
Jurisdiction
Ireland
Procedural Posture
Competition Authority Merger Notification / Decision on Notification Under Section 4 of the Competition Act, 1991
Outcome
Certificate issued under Section 4(4) of the Competition Act, 1991; merger permitted.
Legal Topics
Merger Control, Market Definition, Dominance, Vertical Integration, Horizontal Effects, Barriers to Entry
Competition Law Corporate Law Merger Control Market Definition Dominance Vertical Integration Horizontal Effects Barriers to Entry

Case Brief

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Parties

Guinness Ireland Group Limited

Notifying Party / Acquirer

United Beverages Holdings Limited

Target / Acquired Party

Irish Distillers Group plc

Objector / Third Party

Procedural Posture

Competition Authority Merger Notification / Decision on Notification Under Section 4 of the Competition Act, 1991

Legal Issues

  1. 1 Whether the acquisition by Guinness Ireland Group Limited of the remaining shares in United Beverages Holdings Limited prevents, restricts or distorts competition contrary to Section 4(1) of the Competition Act, 1991.
  2. 2 Whether the relevant product and geographic markets are correctly defined for the purposes of competition analysis.
  3. 3 Whether the proposed merger would result in a substantial lessening of competition or abuse of dominance.

Ratio Decidendi

The Authority determined that the relevant markets are the production of soft drinks and the wholesaling of packaged beer and soft drinks, with the geographic market being the State. The Authority found that the merger would have horizontal effects in these markets but that the combined market shares of GIG and UBH would not be sufficient to substantially lessen competition. The Authority also found that barriers to entry are low, the market remains competitive, and there is no evidence that the merger would result in exclusionary effects or abuse of dominance. Accordingly, the notified agreement does not infringe Section 4(1) of the Competition Act, 1991.

Court Disposition

Certificate issued under Section 4(4) of the Competition Act, 1991; merger permitted.

Orders

  • The notified agreement is not prohibited by Section 4(1) of the Competition Act, 1991.
  • A certificate is granted under Section 4(4) of the Competition Act, 1991.