SINGAPORE: Fraser and Neave Ltd has agreed not to enforce an agreement preventing Heineken from entering the soft drinks market in Singapore, says Competition Commission Singapore (CCS).

In a statement, CCS said on Nov 15, 2012, Heineken International B.V. (Heineken) completed the purchase of the entire interest in Asia Pacific Breweries Ltd and other assets in Asia Pacific Investment Pte Ltd (APIPL) held by Fraser and Neave Ltd (FandN).

The APIPL share purchase agreement included a clause which restricts Heineken from engaging in the manufacture, distribution and sales of soft drinks, for a period of two years (the "Soft Drinks Non-Compete Clause") until Nov 14, 2014.

In January 2013, CCS commenced an investigation into the clause, and FandN has since voluntarily agreed not to enforce the clause with respect to Singapore by giving a signed undertaking to the CCS to this effect.

As a result, CCS is of the view that the contractual impediment to Heineken to enter the local soft drinks market is now removed.

CCS is a statutory board established under the Competition Act (Chapter 50B) on Jan 1, 2005 to administer and enforce the Act. -- Bernama