The Australian Competition & Consumer Commission (ACCC) has outlined its preliminary competition concerns with MicroStar’s proposed purchase of Konvoy’s assets in a Statement of Issues today.
MicroStar operates under the Kegstar name in Australia, and has proposed the acquisition of the assets following Konvoy being placed into administration.
ACCC Commissioner Dr Philip Williams said: The proposed acquisition would combine the only two providers of keg pooling services in Australia. Many craft breweries appear to be reliant on keg pooling services to supply pubs and bars beyond local areas, and they are likely to have neither the ability nor the incentive to invest to self-supply and manage a fleet of kegs.
“Our preliminary view is that the proposed acquisition is likely to substantially lessen competition in the supply of keg pooling services in Australia.”
The ACCC said feedback it has received regarding the acquisition indicates that alternatives to keg pooling services, such as keg leasing or ownership, are not a close substitute and other businesses are not likely to start supplying keg pooling services in competition.
In its Statement of Issues, the ACCC said its preliminary view was that:
- The proposed acquisition would be likely to have the effect of substantially lessening competition in the supply of keg pooling services in Australia.
- Kegstar and Konvoy both supply keg pooling services to various customers in Australia. Kegstar and Konvoy are the only two suppliers of keg pooling services, and the ACCC considers that they are likely to be each other’s closest competitor. Market feedback indicates that Konvoy currently provides a strong and effective constraint on Kegstar.
- The ACCC is concerned that post-acquisition, Kegstar would be able to sustainably raise prices, or otherwise reduce service quality, relative to the counterfactual in which the assets of Konvoy are acquired by another party that continues to provide keg pooling services in Australia.
A Statement of Issues is not a final decision about a proposed acquisition; it simply outlines the ACCC’s preliminary views and identifies further lines of inquiry. The Statement of Issues also enables all interested parties to consider and make submissions regarding the primary issues identified by the watchdog.
Interested parties should provide submissions by 5pm on 28 August 2025. Responses may be emailed to mergers@accc.gov.au with the title: ‘Submission re: MicroStar/Konvoy’.
Anyone who would like to discuss the matter with ACCC staff, or has any questions about this Statement of Issues, should contact mergers@accc.gov.au.
The ACCC said it anticipates making its final decision on 9 October 2025, although it added that this timeline can change.