The Bundeskartellamt has cleared under merger control the formation of a joint purchasing company by Warsteiner Brauerei Haus Cramer KG and Karlsberg Holding GmbH. There is currently no reason to take action even when taking account of the prohibition of anti-competitive practices.

Andreas Mundt, President of the Bundeskartellamt: “Warsteiner and Karlsberg intend to bundle procurement activities. We examined the project with regard to both the sales side and the procurement side in great detail. In the end, the project does not raise competition concerns in either the beer sector or the non-alcoholic cold drinks sector. In all possible markets there are larger competitors, the joint market shares do not reach a problematic level and there are no other apparent competition law problems. However, should other members join the purchasing company, the project would have to be re-examined in terms of the prohibition of anti-competitive practices and possibly also in terms of merger control law.”

Cooperation projects must comply with the prohibition of anti-competitive practices and, depending on their structure, they are also subject to merger control – which applies in the present case. First the market positions reached by the parties involved both in their capacity as purchasers of the services which are to be procured and in their capacity as providers of the products which are produced and distributed with the help of these services are relevant in assessing the project. The prohibition of anti-competitive practices concerns issues such as the scope of the joint procurement, binding exclusivity requirements regarding this form of procurement, and the information which is exchanged. If the parties’ market position is limited, it is, however, unlikely that the joint procurement will have anti-competitive effects.

Warsteiner and Karlsberg produce and distribute beer and mixed beverages based on beer, Karlsberg also produces and distributes mineral water and other non-alcoholic beverages to a relevant extent at several locations in North Rhine-Westphalia, the south-west of Germany and Bavaria. As medium-sized enterprises, the companies already belong to the bigger breweries, but are not among the largest ones in Germany.