The ACCC has decided that MicroStar Logistics LLC's (MicroStar) acquisition of the assets of Konvoy Holdings Pty Ltd (Receivers and Managers Appointed) (Konvoy) could substantially lessen competition in the market for keg pooling services and requires an in-depth Phase 2 review.
MicroStar, which operates under the name Kegstar in Australia, and Konvoy are the only suppliers of keg pooling services in Australia. These services enable brewers to rent kegs on a short-term basis to supply alcoholic drinks on tap to licensed venues, without needing to arrange for collection of empty kegs.
"Keg pooling services are particularly important in the independent brewing industry as many smaller brewers do not own their own fleet of kegs," ACCC Commissioner Dr Philip Williams said.
"We're concerned that the acquisition could substantially lessen competition in the supply of keg pooling services by removing MicroStar's closest competitor."
The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2.
