Another hurdle has been crossed on the looming takeover of Australia's number one brewery firm, Foster's Group, as the country's competition regulator indicated on Wednesday that SABMiller's $10.7 billion buyout plan poses no competitive constraints.

In a statement, Australian Competition and Consumer Commission (ACCC) chair Rod Sims declared that there is no point in blocking the impending sale of the local brewery to the UK-based beverage giant, notwithstanding the likelihood that SABMiller will end up as sole owner of another local company, the Pacific Beverages.

Currently in a joint-ownership set up with Coca-Cola Amatil (CCA), SABMiller is all set to purchase the Pacific Beverages shares owned by CCA in order to establish full ownership of the local brewery that is known for selling the Bluetongue beer.

Such spectre is not worrisome at all, the ACCC said, as the competition watchdog maintained that Pacific Beverages' exit from the brewery industry will not convulse the beer market competition in a big way.

In the first place, Pacific Beverages currently commands an insignificant slice of Australia's beer market and its merger with SABMiller is far from damaging the local competition environment, the ACCC said on its statement.

Following a comprehensive review of the takeover proposal by SABMiller and numerous submissions from competing breweries, supermarket retailers, distributors, licensed venues and bottle shops, the ACCC adjudged that the move will not hurt the existing competition among players in the beer industry.

"The ACCC has formed the view that the proposed acquisition is not likely to result in a substantial lessening of competition for the supply of beer," Sims as quoted by the Australian Associated Press (AAP) as saying on his news release.

He also noted that once the merger has been finalised, SABMiller will have to compete with Lion Nathan, currently the number two beer company in Australia, and other beer brands that were imported and supplied by major supermarkets into the local market.