IRISH DRINKS group C&C has been given the green light by the Competition Authority to proceed with its proposed €205.2 million acquisition of Tennant’s lager brand and assets in Scotland and Northern Ireland.
The Clonmel-based company, which is best known for its Bulmers and Magners cider, will now seek shareholder approval for the deal at an extraordinary general meeting in Dublin on Friday next.
“The Competition Authority has taken the view that the proposed acquisition does not raise competition concerns in the State,” a statement from the competition body stated yesterday.
The authority said it would make a full text of its decision public on November 16th.
C&C, which is led by John Dunsmore, announced the takeover deal on August 27th.
It involves the acquisition of the Target Business from Anheuser-Busch InBev. This includes the purchase of the Tennant’s lager brand, the Wellpark Brewery in Glasgow and distribution rights to Stella Artois in Ireland and Scotland.
The Target Business generated net sales of £162.21 million and earnings before interest, tax, depreciation and amortisation of £21.82 million in the year ended December 31st, 2008. It employs 300 staff.
CC said the deal would deliver cost savings and revenue synergies of £10 million per annum by 2012 and would be immediately earnings accretive.
There was also positive news for C&C yesterday following the release of trade statistics for cider sales in Britain. In the pub trade, Magners cider recorded year-on-year growth in July of 5 per cent. Magners also grew in the off trade, although it lagged the growth of the market overall.
