EU approves AB InBev buyout of SABMiller

The EU’s anti-trust regulator on Tuesday cleared the blockbuster buyout by the world’s top brewer AB InBev of rival SAB Miller, but only on condition that it sells off most of SABMiller’s European business.

The Belgium-based group’s $122-billion acquisition, which was announced in November, would be the third largest in history if it clears all regulatory hurdles.

“The European Commission has cleared under the EU Merger Regulation the proposed acquisition of SABMiller, the world’s second largest brewer, by AB InBev, the world’s largest brewer,” the EU’s executive said in a statement.

“The clearance is conditional on AB InBev selling practically the entire SABMiller beer business in Europe,” it added.

AB InBev, brewer of Stella Artois and Budweiser, has already agreed to sell off major European brands owned by SAB Miller, including Peroni and Grolsch. Japanese beer giant Asahi Group agreed to buy those brands last month for an undisclosed sum.

But the EU demanded the brewer go further with AB InBev offering to also divest SABMiller’s business in the Czech Republic, Hungary, Poland, Romania and Slovakia.

“The Commission’s decision to approve the deal is conditional upon full compliance with the commitments,” the statement added.