The Australian Competition and Consumer Commission (ACCC) has announced its decision to oppose MicroStar Logistics LLC’s proposed acquisition of the assets of Konvoy Holdings Pty Ltd. Both companies are key suppliers of keg pooling services to brewers across Australia.

MicroStar, operating as Kegstar in Australia, and Konvoy are the only providers of keg pooling services, which allow brewers to rent kegs for short-term use. The ACCC's investigation revealed that the acquisition would likely lead to a substantial lessening of competition in the market.

ACCC Commissioner Dr. Philip Williams emphasized that without competition, MicroStar could raise prices and reduce service quality, significantly impacting independent brewers. While brewers have alternatives like owning or leasing kegs, these options do not adequately replace keg pooling services, especially for venues located further away.

The ACCC noted that Konvoy is currently in receivership, and while liquidation of its assets is a possibility, the commission believes that the business could continue under new ownership if the acquisition does not proceed. This would allow for potential competition to MicroStar in the keg pooling market.

MicroStar is the largest independent keg services company in the U.S. and has been operating in Australia since 2021 after acquiring Kegstar from Brambles. Konvoy, on the other hand, provides both short-term keg pooling and long-term keg leasing services, along with maintenance and tracking technology.