thePelican

For Your Information: April 21, 1998


The Federal Trade Commission today announced the following action.

Consent agreements given final approval: Following a public comment period, the Commission has made final consent agreements with the following entities. The Commission action makes the consent orders binding on the respondents.

A consent order related to the merger of Guinness PLC and Grand Metropolitan PLC into a new company, Diageo plc, was made final by the Commission. Under the terms of the order, the companies, which are competitors in the premium Scotch and in the premium gin markets, would sell three of their top-selling premium brands of liquor, including their Dewar's Scotch, Bombay Original gin and Bombay Sapphire gin brands. The divestiture would settle FTC charges that the merger would eliminate substantial competition between the two companies and increase concentration in already highly concentrated markets, resulting in higher prices to consumers. The consent order requires that the brands be divested to a Commission-approved buyer by June 8, 1998. The Commission vote to make the consent order final was 5-0, with Commissioner Mary L. Azcuenaga dissenting in part and concurring in part. (See news release dated December 15, 1997; Docket No. C-3801. Staff contact is Joseph S. Brownman, 202-326-2605.)

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