UNILEVER'S proposed acquisition of Lyons Irish Holdings has been referred to the Competition Authority by the Enterprise and Employment Minister, Mr Richard Bruton.
Unilever, which offered £97.5 million for Lyons two months ago, said it would be making a submission to the Competition Authority and it was confident of a satisfactory outcome.
Mr Bruton said that in making his decision he "had regard to the existing concentration in the tea market and consumer interests". The Minister has asked the Competition Authority to report to him by June 18th. On receipt of the report, Mr Bruton will decide what further action, if any, is warranted.
Lyons has a 56 per cent share of the Irish tea market, according to industry sources, and its acquisition would give Unilever about 61 per cent of a market worth about £40 million.
Despite a huge £1 million marketing drive for its relaunched Lipton ten brand in the Republic, Unilever only managed to capture a 5 per cent share. The other major players in the domestic tea market are Barry's, which has a 20-25 per cent, and Bewley's, which has about 5 per cent.
Unilever's Irish subsidiary agreed to buy the 75 per cent of Lyons, owned by Allied Domecq, for £73 million.
