AB InBev has intervened in the Competition Tribunal’s regulatory scrutiny of the R40bn Distell-Heineken tie-up, calling for SA’s largest alcohol producer to sell its Hunters cider brand if it wants the deal to get the go-ahead.

A Business Day report says the deal will combine the world’s largest cider manufacturer, Heineken, which makes Strongbow, with SA’s largest alcohol producer and the maker of Savanna and Hunters.

The tribunal began hearing from parties interested and affected by the merger yesterday in Pretoria.

To get the deal over the line, Heineken has proposed selling the Strongbow cider brand in SA and Namibia to a historically disadvantaged joint venture.

The Competition Commission found that the merger would diminish competition in the flavoured alcohol beverages market.

It did, however, recommend to the tribunal that the deal go ahead because it is satisfied the sale of Strongbow to a credible majority black-owned buyer would deal with its competition concerns.

According to the commission, the Hunters and Strongbow brands compete with each other. AB InBev, which owns SAB, has asked to be allowed to intervene in the hearings, calling on the tribunal to force Distell to sell Hunters, one of its strongest brands.

SAB said the Competition Commission had found the merger will bring about a substantial prevention and lessening of competition in the cider and flavoured beverage markets.

‘We support this view.’

The report notes hearings are set down until Monday, with labour concerns also set to be addressed.

Full Business Day report