The ACCC's decision to oppose MicroStar's proposed acquisition of Konvoy is interesting for reasons that go beyond the relatively concentrated keg pooling market.
Konvoy has been in voluntary administration and receivership since March 2025 and its receivers conducted a sale process. MicroStar, which operates as Kegstar in Australia, was the successful bidder.
Ordinarily, you might think Konvoy's financial position would weigh heavily in favour of the sale proceeding.
The ACCC took a different view.
It acknowledged that Konvoy's assets might ultimately be liquidated, but considered there was a real prospect that the business could instead be acquired by another buyer and continue under new ownership. With MicroStar/Kegstar and Konvoy the only suppliers of keg pooling services in Australia, the ACCC concluded that the proposed acquisition would be likely to substantially lessen competition.
There is a useful point here for distressed M&A.
Receivership does not mean that a sale to a competitor escapes merger scrutiny. The question remains what is likely to happen if the proposed acquisition does not proceed, including whether the business or its assets could continue in the hands of another buyer.
For purchasers looking at distressed assets, particularly where they are already a close competitor of the target, that is worth having on the radar early.
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