A HIGH Court judge has overturned a government decision which sought to force Interbrew into selling Bass Brewers.
In a dramatic reversal of the case, judge Alan Moses ruled last week that the procedure leading to the UK Competition Commission's decision, endorsed by the DTi, was unfair.
While good news for Interbrew the ruling has done little, as yet, to settle the future of Alton's Bass brewery.
The Belgian beer giant purchased the brewing arm of Bass in June last year in a deal worth £2.3 billion.
The transaction took place just two weeks after the takeover by Interbrew of Whitbreads brewing operation, leaving the Belgium company with a mammoth 38 per cent of British beer production, leading the Competition Commission to block the merger.
Known as "the world's local brewer", Interbrew condemned the commission's stance as "excessive". British-born chief executive, Hugo Powell, said: "This recommendation defies logic and is clearly disproportionate to the competition issues at stake.
"The merger of Interbrew UK and Bass Brewers enjoyed widespread support from employees, trade unions, MPs from all parties and customers. Transferring the Bass UK market share to another international brewer achieves nothing for the public interest that Interbrew would not have achieved."
It is a view echoed by communications director at Bass Brewers, Philip Malpass, who was reported as saying: "Forcing Interbrew to sell 75 per cent of its UK business is a move totally disproportionate to any competition concerns that the commission may have."
In the event, Interbrew decided to fight the ruling through the courts and was delighted with last week's victory. A spokesperson said: "This has never happened before. The High Court has quashed the original decision but we need to decide where we go from here."
The plan was for a further court hearing at which the two sides would discuss what would happen next. But this has been put on hold.
"We still do not know what the future holds for Bass or when that decision will be made," she said.