THE Belgian Government has criticised the UK's decision to block Interbrew's £2.3bn takeover of Bass's brewing business.

Belgian's economic minister Charles Picque said in a statement the decision was "prejudicial" and favoured British competitor Scottish & Newcastle.

He said it appeared the decision would hurt the interests of Interbrew and Bass, but would protect Scottish & Newcastle.

The comments follow Trade and Industry Secretary Stephen Byers' decision earlier this week to block Interbrew's deal, saying it would operate against the public interest, and would reduce competition in the market.

The acquisition would also create an "effective duopoly" in the industry between Interbrew and UK brewing competitor Scottish and Newcastle, he said.

He added Interbrew must now seek a buyer for the brewing business which meets approval from the Director General of Fair Trading (DGFT).

A spokeswoman from Mr Byers' office commented: "We will respond as soon as possible.

"The decision was made purely on competition grounds.

"The Competition Commission and the DGFT found the merger would reduce competition in the market."