2007-03-23

Watchdog wants 30 more days to study Lakeport takeover

The Hamilton Spectator
(Mar 23, 2007)
Canada's competition watchdog is asking for another 30 days to review the proposed takeover of Hamilton's Lakeport brewery by Labatt.

Pamela Wong, spokesperson for the Competition Bureau, said the commissioner will appear before the federal Competition Tribunal Monday to get an extension on the review of the merger. That approval is not guaranteed.

"This is quite a complex matter and the parties wanted to get this over as quickly as possible. We just need more time," she said.

Legislation requires a review of a merger worth more than $50 million. The Labatt acquisition is pegged at about $201 million.

"It's not uncommon for something like this to happen," said Lakeport chair Teresa Cascioli. "It's sort of par for the course for a deal like this.

"Given the amount of work required to review something like this I'm not surprised that more time is needed."

Beer industry analyst Peter Holden of Veritas Investment Research firm, said there won't likely be any problems with the approval of the merger.

"You can't say there isn't lots of competition in the market," he said.

Labatt has offered $28 per unit for Lakeport. The deadline on the offer will be extended until the competition review is completed.

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