The proposed takeover of United Beverages Holdings by the Guinness Ireland Group has been referred to the Competition Authority by the Minister for Enterprise Trade and Employment.

Ms Harney has asked the Authority to report to her by September 19th. She will then consider what further action, if any, "is warranted by the exigencies of the common good". The proposed deal between Guinness and UBH is valued at about £48 million. Guinness already has a 30.8 per cent stake in UBH. The deal involves Guinness paying £12.9 million for the 27.9 per cent of UBH owned by James Crean, £8.6 million for the 18.5 per cent stake held by Fyffes and about £11 million for the remainder of the company held by the Byrne and Doyle families.

UBH has an annual turnover of about £80 million and returned profits after tax last year of £4.3 million. It manufactures soft drinks and distributes bottled and canned beer. Its main soft drinks brand is Finches but it also distributes Cadet, Corcorans and Splash, Becks beer and Stonehouse cider. It distributes the Woodies alcopop drinks and has an estimated 27 per cent of the packaged beer market. Completion of the deal would significantly increase Guinness' geographical presence in the soft drinks and bottled beer distribution business. The company already has the Deasy wholesaling operation in Cork and Connacht Mineral Water in Galway. In a statement last night Ms Harney said she referred the takeover to the Authority under the Mergers and Takeover (Control) Acts 1978 to 1996.