A PYMNTS Company

US: AAI warns rumored beer merger would drown the market

By  |  December 1, 2014

The American Antitrust Institute has reportedly sent a letter to the US Department of Justice warning the agency of the negative impact a proposed beer merger would have on the US market.

Reports say the AAI sent a letter to DOJ Assistant Attorney General William Baer regarding reported plans for Anheuser-Busch InBev and SABMiller to merge. AB InBev stands as the world’s largest brewer, while Miller is in second place.

A combination of the two would leave the US with just one behemoth of a dominant beer company with 65 percent of the nation’s beer market value.

Some geographical markets could be even more concentrated, the AAI said.

”An ABI-Miller combination would likely inflict substantial harm on consumers,” AAI President Bert Foer said. “It would eliminate head-to-head competition between the two largest brewers in the United States.”

No merger has been officially announced yet, however.

Full content: Corporate Crime Reporter

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.