Posted On 25 Jan 2017
Since the union of the AmBev and SABMiller breweries a year ago, these have not been able to finish their homologation in Ecuador. Yesterday it was known that the Ecuadorian Justice rejected, for the second time, the last stumbling block of the operation. The Provincial Court of Guayas declared void the order of the antitrust authorities to auction the Club brand.
Cervecería Nacional, the familiar face of Sab Miller in the country and owner of Pilsener, Pony Malta, and Premium Club, was obliged to sell the latter to a third party to avoid, according to the Superintendency, that the merger creates a brewing monopoly in Ecuador. By auctioning Club Premium, the most successful brand in a high consumer target, the entry of another operator to the local market is favored. In fact, one of the companies in the competition, Heineken, had already shown interest in buying it and thus making its way in Ecuador.
But Cerveceria Nacional not want to sacrifice one of its dearest ‘children’ just for the sake of forming a new family. And it went to court seeking protection. It filed a constitutional action and the judge annulled, in the first instance, the order of the Superintendency.
Market Control then appealed to the Court of Justice of Guayas and this ruled again in favor of the company. This is what the company stated yesterday in a communiqué: that the second court confirmed the decision to reject the auction of the Club brand.