ACCC Blocks MicroStar’s Bid to Buy Konvoy Assets Amid Competition Concerns

Australia’s competition watchdog has stepped in to prevent a near-monopoly in the nation’s keg pooling industry.

ACCC blocks MicroStar’s proposed Konvoy acquisition, protecting competition in Australia’s keg pooling market.

In a recent decision, the Australian Competition and Consumer Commission (ACCC) announced it would oppose MicroStar Logistics LLC’s proposed acquisition of the assets of Konvoy Holdings Pty Ltd (Receivers and Managers Appointed) — two key players that supply keg pooling services to brewers across Australia.

Both companies, known respectively as Kegstar (MicroStar’s Australian arm) and Konvoy, are currently the only suppliers of keg pooling services in the country. These services allow brewers to rent kegs on a short-term basis to deliver beer and other alcoholic beverages to venues without needing to own large keg fleets.

“Our investigation has found that MicroStar acquiring the assets of Konvoy, the only other provider of keg pooling services in Australia, would be likely to substantially lessen competition,” said ACCC Commissioner Dr Philip Williams.

Why the ACCC Opposed the Deal

The ACCC’s primary concern is that allowing MicroStar to absorb Konvoy would remove its only competitor in the Australian market. Without competition, MicroStar could raise prices or reduce service quality, leaving independent brewers with few viable alternatives.

While brewers can technically use their own kegs or enter long-term leasing arrangements, these options often don’t stack up — especially for smaller or regional brewers who rely on the flexibility and logistics of keg pooling to reach venues across the country.

“Higher prices for keg pooling would have a significant impact on many independent brewers,” Dr Williams said.

What Happens Next for Konvoy

Although Konvoy entered receivership in March 2025, the ACCC believes the business is likely to continue operating under new or existing ownership — even if its assets are ultimately sold. Should liquidation occur, the ACCC expects those assets would remain available to new or emerging rivals, preserving at least some level of market competition.

Industry Context

MicroStar is one of the largest independent keg service providers globally, with operations in the United States, UK, Europe, Australia, and New Zealand. It entered the Australian market in 2021 after acquiring Kegstar from Brambles.

Under its pay-per-fill (PPF) model, breweries pay for the number of kegs they refill, while MicroStar handles collection, cleaning, tracking, and redistribution — streamlining logistics for breweries large and small.

Konvoy, by contrast, offers short-term keg pooling, long-term leasing, maintenance, and tracking services via its Katch technology. Its receivers determined that a sale of its assets would deliver the best return for creditors, prompting MicroStar’s proposed purchase — which has now been blocked.

For further details, see the ACCC’s original media release here.

What This Means for Businesses

The ACCC’s decision underscores the regulator’s ongoing focus on protecting competition in niche supply chains, including those that support Australia’s vibrant craft beer sector.

If you operate a business involved in mergers, acquisitions, or supplier contracts, it’s essential to seek early legal guidance to assess competition law risks before completing a deal.

About Bane Legal Services

At Bane Legal Services, we’re not a law firm — and we don’t provide legal advice.

What we do is connect you with the right commercial lawyer for your needs. With over 30 years of business experience, we understand the real-world pressures of running and growing a company. Our team helps you find the best-qualified legal professional to guide you through complex issues like competition compliance, mergers, acquisitions, and commercial contracts.

If you’re planning a business acquisition or restructuring, talk to Bane Legal Services — your trusted legal matchmaker.