The Competition Authority has decided to carry out a full investigation into the proposed deal by Heineken to buy Scottish and Newcastle's Irish business - Beamish and Crawford.
Both companies are involved in the production, sale and distribution of alcoholic drinks to both pubs and off-licences.
The move follows the European Commission's decision to refer the Irish part of the Heineken-Scottish & Newcastle deal to the Competition Authority. The European Commission said that while the deal posed no threat to competition in Belgium, Britain, Finland and Portugal, it said a risk did exist here.
Heineken Ireland brews Heineken lager and Murphy's stout and wholesales Amstel and Coors as well as a range of speciality beers. It is based in Cork and employs 425 people.
Scottish & Newcastle's Irish business is Beamish and Crawford, and is also based in Cork. It has a workforce of 160 and brews Beamish stout.
Earlier this week, S&N accepted a €9.9 billion takeover deal by Carlsberg of Denmark and Heineken of Holland.
The Competition Authority has now to determine whether the deal will 'substantially lessen competition' in markets for goods or services here
The authority's decision will be made by November 3.
