By Foo Yun Chee

BRUSSELS (Reuters) -Luxembourg's largest brewery Brasserie Nationale on Wednesday lost its challenge against EU antitrust scrutiny of its proposed buy of wholesale drinks distributor Boissons Heintz as Europe's second-highest court sided with EU regulators.

The case underscores the growing trend among companies willing to fight EU review of deals that do not meet the EU revenue threshold, especially following U.S. gene sequencing company Illumina's landmark court win last year in its bid for cancer diagnostic test maker Grail.

Brasserie took its grievance to the General Court after the European Commission told it to seek EU approval for the deal because of the importance of drinks imports in Luxembourg even though the acquisition fell short of the revenue threshold that would trigger an EU review.

The EU competition enforcer issued the order to Brasserie at the request of the Luxembourg antitrust authority, which does not have merger rules. The brewer argued that the Luxembourg request to the EU came too late.

The Luxembourg-based General Court backed the EU antitrust enforcer's review of the deal.

"Since information limited to the mere existence of a concentration does not constitute 'making known' within the meaning of EU law, Brasserie Nationale and Munhowen have not shown that the request for referral had been submitted out of time," judges said.

Brasserie can appeal to the Court of Justice of the European Union, Europe's highest.

Despite the ongoing litigation, Brasserie subsequently sought EU approval for the deal and has offered remedies to address competition concerns. The EU will decide by July 17 whether to clear the deal.

The case is T-289/24 Brasserie Nationale and Munhowen v Commission.

(Reporting by Foo Yun Chee, Editing by Louise Heavens)