Kirin Clears Competition Hurdle

By Andrew Starke

The Australian Competition & Consumer Commission (ACCC) has given the green light for Kirin’s takeover of local brewer Lion Nathan.

The watchdog’s approval was widely considered to be the only major regulatory stumbling block ahead of a shareholder meeting in September or October.

The ACCC’s approval is a condition of the scheme of arrangement, which Kirin is using to acquire the 54 per cent of Lion Nathan it does not already own. The deal values the brewer at $6.5 billion.

Last year the ACCC expressed concerns about Kirin’s acquisition of Dairy Farmers’ dairy assets and imposed a number of conditions before approving the deal.

Lion Nathan’s key brands are Tooheys, Boag’s, Castlemaine, XXXX, Hahn and Swan in Australia plus Steinlager and Speights in New Zealand. It also distributes Beck’s and Heineken premium beers in Australia.

Lion Nathan shares were trading at $11.57 at midday today compared to $11.52 seven days ago.

[Wed 01/07/2009 02:50:45]