AB InBev makes new offer to clear European antitrust hurdles in SABMiller deal
by Staff Writer
2016-04-29 09:17:25.0
ANHEUSER-Busch InBev, the world’s biggest brewer, has offered to sell all of acquisition target SABMiller’s central and eastern European assets.
The brewer on Friday announced the updated package of remedies intended to "proactively address potential regulatory considerations" that could hamper its more than R15bn takeover of its nearest rival.
The latest proposal — which affects its operations in Czech Republic, Hungary, Poland, Romania and Slovakia — is in addition to the sale of Peroni, Grolsch and Meantime and their related businesses, the company’s statement said.
AB InBev last week agreed to sell those three brands to Japan’s Asahi for €2.55bn.
In China, SABMiller is selling its 49% stake in CR Snow to joint-venture partner China Resources Beer.
The deal faces hurdles other than antitrust issues — empowerment concerns in SA need to be addressed too.
The Food and Allied Workers’ Union (Fawu) is unhappy about the way the Zenzele Employee Trust empowerment vehicle is being treated in the deal.
AB InBev shares were trading 2.89% weaker at R1,780 in midmorning trade on the JSE.
Analysts questioned the wisdom of the latest move.
“It seems slightly strange. There is no antitrust overlap that I can see. AB InBev has no presence to speak of in these countries,” said Andrew Holland, beverage analyst at Societe Generale. “Perhaps the EU is looking at the pan-European market share.”
If the European Commission chose to open an in-depth investigation into the SABMiller takeover, it would not receive clearance for up to 90 working days, a delay AB InBev may be keen to avoid.
Initial valuations for SAB’s eastern European breweries varied widely, between $4bn and $7bn, based on multiples of earnings or price per volume.
With Reuters
AB InBev agreed to buy SABMiller in October for about $110bn. Picture: REUTERS
ANHEUSER-Busch InBev, the world’s biggest brewer, has offered to sell all of acquisition target SABMiller’s central and eastern European assets.
The brewer on Friday announced the updated package of remedies intended to "proactively address potential regulatory considerations" that could hamper its more than R15bn takeover of its nearest rival.
The latest proposal — which affects its operations in Czech Republic, Hungary, Poland, Romania and Slovakia — is in addition to the sale of Peroni, Grolsch and Meantime and their related businesses, the company’s statement said.
AB InBev last week agreed to sell those three brands to Japan’s Asahi for €2.55bn.
In China, SABMiller is selling its 49% stake in CR Snow to joint-venture partner China Resources Beer.
The deal faces hurdles other than antitrust issues — empowerment concerns in SA need to be addressed too.
The Food and Allied Workers’ Union (Fawu) is unhappy about the way the Zenzele Employee Trust empowerment vehicle is being treated in the deal.
AB InBev shares were trading 2.89% weaker at R1,780 in midmorning trade on the JSE.
Analysts questioned the wisdom of the latest move.
“It seems slightly strange. There is no antitrust overlap that I can see. AB InBev has no presence to speak of in these countries,” said Andrew Holland, beverage analyst at Societe Generale. “Perhaps the EU is looking at the pan-European market share.”
If the European Commission chose to open an in-depth investigation into the SABMiller takeover, it would not receive clearance for up to 90 working days, a delay AB InBev may be keen to avoid.
Initial valuations for SAB’s eastern European breweries varied widely, between $4bn and $7bn, based on multiples of earnings or price per volume.
With Reuters
