The Competition Commission has voiced its concerns about the £2.3 million takeover of Bass's brewing business by Belgian giant Interbrew.

Worries over the deal include whether it will reduce competition in the brewing market, and whether it will give Interbrew a dominant position based on its leading brands.

The deal was referred to the UK for scrutiny in August by the European Commission after UK authorities told the EC it raised competition issues in the UK market.

UK authorities had considered the combined strength of Interbrew and UK rival Scottish & Newcastle would give rise to the risk of a "harmful duopolistic outcome" and the EC had agreed with this.

The EC had said referring the deal made sense.

The UK authorities carried out an investigation into Interbrew's acquisition of Whitbread's brewing interests earlier this year.

The £400 million deal was eventually passed by the national authorities in September.

The Competition Commission has said it would discuss the issues with Interbrew before deciding what to do about the situation.

One option would be for the company to sell the acquired Bass businesses in Scotland and Northern Ireland.

Alternatively it could sell some brands and brewers to allow the creation of a competitive fourth brewer/wholesaler.

The commission is due to hand its report to Stephen Byers, the Secretary of State for Trade and Industry, on December 6.