April 28, 2008 / 12:57 PM / 11 years ago

Czech regulator clears Heineken acquisition

PRAGUE, April 28 (Reuters) - Dutch brewer Heineken NV (HEIN.AS) can acquire Czech beer group Drinks Union, the Czech Antimonopoly Office (UOHS) ruled on Monday.

Drinks Union is the third largest brewer in the Czech Republic behind SABMiller’s SAB.L Plzensky Prazdroj and InBev’s INTB.BR Pivovary Staropramen.

Heineken said last month the deal will give it a market share of 12 percent in the Czech Republic and total domestic volume of more than 1.9 million hectolitres.

The transaction cost, which will be funded from existing credit facilities, has not been disclosed.

“The office came to the conclusion that the merger will not result into a substantial breach of competition given a relatively low market share of both competitors and the existence of significant competitors,” UOHS said in a statement.

Reporting by Martin Dokoupil; Editing by David Cowell

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