AB InBev-SABMiller merger wins US approval
BREWERS Anheuser-Busch InBev and SABMiller received United States antitrust approval for their US$107 billion (RM434.82 billion) merger on Wednesday, bringing the largest-ever consumer products deal a big step closer to completion.
The combination of the world’s top brewers now only needs regulatory clearance from China, a blessing that is widely expected given the proposed divestment of SAB’s business there.
The deal has already been cleared by Australia, Europe and South Africa, and AB InBev said it still expected closure this year.
The US Department of Justice approval, which is notable after the regulatory authority derailed several recent mega-mergers, came a day before SABMiller was to meet with shareholders at its annual general meeting in London.
While its takeover by the brewer of Budweiser is not yet on the agenda for a shareholder vote, there has been speculation in recent weeks that some activist shareholders may try to push for a renegotiation of terms, given the steep drop in the British currency.
AB InBev will make concessions beyond its publicly stated offer to sell SAB’s stake in MillerCoors, its US joint venture with Molson Coors, as part of the deal. AB InBev will also have to curb its use of incentive programmes to limit competition.
Meanwhile, SABMiller Plc reported higher first-quarter sales as the brewer enters the final stretch before being bought by AB InBev in the industry’s biggest deal.
Net producer revenue rose two per cent on an organic, constant-currency basis in the three months through last month, said the maker of Castle Milk stout and Zambezi lager yesterday.
Reported sales shed four per cent, weighed down by the strength of the greenback. Agencies
NEARING COMPLETION: Deal now only needs regulatory clearance from China