Heineken must make cuts in Spain

With approval of acquistion, Dutch brewery will still be Spanish market leader

Dec 29, 1999 - Heineken must cut its production in Spain by at least 17% as part of the conditions for its takeover of Spain's Grupo Cruzcampo.


"The conditions set by the Spanish authorities are tough but we are happy with the approval," said Albert Holtzappel, a spokesman for the Dutch brewery.

Spanish authorities reportedly were concerned that with the purchase of Cruzcampo, Heineken's position in certain parts of Spain would be too dominant. With the takeover of Cruzcampo, Heineken plans to merge its operations with its other Spanish subsidiary, El Aguila.

Further conditions set by the Spanish authorities include the termination of exclusivity agreements with distributors and the sale of small regional brands owned by Cruzcampo. Heineken must present the Spanish government a plan within two months explaining how it will comply with the conditions.

Heineken and the merged group, Cruzcampo and El Aguila, will be market leaders in each segment of the Spanish beer market despite the cuts.

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