AB INBev’s acquisition of SABMiller close to winning Chinese approval

According to sources, Anheuser-Busch InBev NV’s $107bn acquisition of rival SABMiller Plc was nearing regulatory approval from China’s Ministry of Commerce, seen to come as soon as this month based on typical review timelines, thus, clearing one of the final hurdles for the deal.

Previously, the deal had secured regulatory clearance from the European Union.

One of the conditions put forth by the regulatory body which asked for the divestiture of operations of the Snow beer, was accepted by the two companies.

The companies agreed to sell SABMiller’s 49% stake in its joint venture with China Resources Beer (Holdings) Co., which controls Snow beer, back to its partner for $1.6bn, a deal which was also nearing approval from China’s commerce ministry.

Following divestitures, the deal will keep Budweiser, Beck’s and Stella Artois under AB InBev’s roof, while ceding control of brands including Miller in the U.S. and Peroni and Pilsner Urquell in Europe.

In the U.S., AB InBev has agreed to sell SABMiller’s stake in the MillerCoors joint venture.

Source: Bloomberg

 

 

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s