ACCC Flags Competition Concerns Over MicroStar’s Proposed Acquisition of Konvoy Assets

Published: 15 August 2025 Source: Australian Competition and Consumer Commission (ACCC)

The Australian Competition and Consumer Commission (ACCC) has raised preliminary competition concerns about MicroStar’s proposed acquisition of Konvoy’s assets, following the release of its Statement of Issues on 14 August 2025.

Konvoy — currently in administration and receivership — and MicroStar are the only two providers of keg pooling services in Australia. Both supply brewers with the ability to rent kegs from a shared pool on a short-term basis, enabling pubs, bars, and venues across the country to serve beer without breweries needing to own or manage their own keg fleets.

MicroStar operates locally under the Kegstar brand, while Konvoy has been a key player since its founding in 2019.

Why the ACCC Is Concerned

According to ACCC Commissioner Dr Philip Williams, the proposed acquisition would effectively eliminate competition in Australia’s keg pooling market.

“Many craft breweries appear to be reliant on keg pooling services to supply pubs and bars beyond local areas,” Dr Williams said. “They are likely to have neither the ability nor the incentive to invest to self-supply and manage a fleet of kegs.”

The ACCC’s market feedback indicates that:

• Alternatives like keg leasing or outright keg ownership are not close substitutes for pooling services.

• No other providers are likely to enter the market and compete meaningfully in the near future.

The ACCC’s preliminary view is that the acquisition may substantially lessen competition — a breach of section 50 of the Competition and Consumer Act 2010, which prohibits acquisitions likely to reduce competition in any market, even when one party is in administration.

Industry Impact

For many small and mid-sized breweries, keg pooling is a lifeline. Without it, breweries may face:

• Increased operating costs from purchasing and maintaining their own kegs.

• Logistical challenges in tracking, collecting, and transporting kegs nationwide.

• Reduced market reach, particularly beyond their local areas.

If MicroStar’s acquisition of Konvoy goes ahead, it could create a single-supplier market — raising potential risks for pricing, service levels, and contract terms.

Next Steps in the ACCC Process

The ACCC is inviting submissions from interested parties in response to its Statement of Issues until 28 August 2025. More details can be found on the ACCC’s website.

About Bane Legal Services

While Bane Legal Services is not a law firm and does not provide legal advice, we are your trusted legal matchmaker. Drawing on more than 30 years of business experience, we connect Australian businesses — including breweries, distributors, and hospitality operators — with the right commercial and competition law experts.

If your business could be affected by mergers, acquisitions, or competition law changes, the right legal partner can help you:

• Assess potential risks to your business model.

• Review and negotiate supply contracts.

• Understand your rights and obligations under the Competition and Consumer Act.

Source: This article is based on the ACCC’s media release, MicroStar's proposed acquisition of Konvoy assets raises concerns (14 August 2025).