The Australian Competition and Consumer Commission (ACCC) has blocked the proposed acquisition of Konvoy Kegs by US-based MicroStar, the owner of rival Kegstar. MicroStar, the largest independent keg services company in the US, entered the Australian market in 2021 when it acquired Kegstar from Brambles. The ACCC’s decision prevents the merger of the two major players in the keg pooling services sector. Keg pooling services provide kegs to independent brewers, who can then distribute beverages to venues.
According to ACCC Commissioner Philip Williams, the acquisition would likely lessen competition in the Australian market. The ACCC’s investigation revealed that allowing MicroStar to acquire Konvoy’s assets would remove the only other significant provider of keg pooling services in Australia. This raised concerns that MicroStar would have too much market power, potentially leading to increased prices or reduced service quality for independent brewers.
Williams noted that while independent brewers could use their own kegs or leased kegs, the ACCC does not consider these a viable alternative if keg pooling prices increase. The regulator believes these options serve different purposes and would not provide sufficient competitive pressure on MicroStar post-acquisition.
The ACCC also acknowledged that Konvoy Kegs is currently in receivership and its assets may be liquidated. However, the regulator believes that even in liquidation, Konvoy’s assets would likely remain in the market, available to new rivals or independent brewers, thereby preserving some level of competition. This potential for future competition was a key factor in the ACCC’s decision to block the acquisition.