Ecuador: Regulator warns Miller/InBev, threatening roll-back of merger

Pedro Paez, Superintendent of Ecuador’s competition and market regulator, SCPM, last week urged global beer giants InBev and SABMiller (which operate under the brand name Cervecería Nacional following their global merger), to fulfil the compromises and obligations established as conditions for authorizing their union. Else, Mr. Paez warned, the approval could be revoked.

Among the conditions to be met are: the sale of the Ambev production plant (in Guayaquil), as well as divesting the Zenda, Biela and Maltín brands; to transfer 5% of company shares to its workers; to include artisanal breweries to set up in the company’s facilities, and to guarantee them a percentage of shelf-space within the company’s coolers in sale locations across the country.

Paez also criticized the appeal presented by Cervecería Nacional before a Judge in Guayas, intended to stop the forced divestment of the Club beer brand. “It is serious, that the right to have a monopoly of near 100% of the market should be elevated to a constitutional concept”, said Paez, Instead, he continued, it is the State’s obligation to prevent monopolistic practices, particularly coming from the private sector.

Full Content: el Tiempo

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