Belgian brewer Interbrew says it will bid for Germany's top beer export Beck's, which is up for sale, in a move that would reinforce its aim to be a leading market consolidator.
"Interbrew is interested in bidding for Beck's because Germany is an important beer market and Beck's is a very nice beer brand," Mr Alain De Waele, vice-president of corporate communications said today.
Industry sources said Interbrew could run into potential regulatory problems in Britain as its flagship Stella Artois is Britain's best-selling premium packaged lager, with Beck's the third best seller.
A combination of the two could prompt Britain's regulators - who have already ruled against Interbrew on a separate issue in the past - to take a closer look.
Interbrew got its fingers burnt when the British government ordered it to sell the British operations of newly-acquired Bass Brewers last January.
However, the brewer appears to have won a reprieve after a London court ruled in May that the decision to force Interbrew to sell Bass should be re-examined.Interbrew to bid for Germany's Beck's
KBC Securities analyst Mr Tom Beyers said he was not convinced by the bid for Beck's.
"Why would Interbrew buy Beck's - a competitor of Stella - while they are trying to roll out their own Stella Artois throughout the world?" he said.
He noted that though Germans rank among the world's leading beer drinkers, the German beer market was highly fragmented and declining in consumption.
In May Interbrew repeated its strategy of targeting existing markets for growth with the goal to be number one or two.
"They said they were not looking for new markets and all of a sudden they're going to launch themselves in a market where they have zero presence," Mr Beyers said.