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Anheuser-Busch InBev set to purchase SABMiller

 

Anheuser-Busch InBev SA/NV (abbreviated as AB InBev) is a multinational Belgian-Brazilian beverage and brewing company headquartered in Leuven, Belgium. It is the world’s largest brewer and has a 25 percent global market share.Anheuser-Busch InBev SA engages in the provision of beverages products. Its activities include manufacturing, marketing and distribution of alcoholic and non-alcoholic drinks. Anheuser-Busch InBev NV is set to merge with SABMiller.

Anheuser-Busch InBev NV’s roughly $108 billion deal to buy SABMiller PLC has been cleared by regulators in South Africa, with the world’s largest brewer on Thursday saying it is “well on track” to close the acquisition in the second half of this year.

The South African competition tribunal has approved of the merger, and this means that the next step to make the takeover of SABMiller plc by AB InBev official, is approval from regulators in China and the US.

In recent weeks, AB InBev took a series of steps to push the deal through in South Africa. The company pledged to create a $69 million investment fund in South Africa and promised that no employees in the country would be made redundant as a result of the merger. In April, AB InBev said the investment fund would support farmers, local manufacturing jobs, and the reduction of harmful alcohol use in South Africa.

Those moves helped the company get the needed approval from the South Africa Competition commission last month, leaving it needing just the tribunal’s nod which it has now secured. The deal if approved by the U.S and China will create the world’s largest brewer, with a nearly 30% market share, which is an indication of the huge profits the company that results from the merger can potentially make.

AB InBev in got approval from the European Union in May. This was after it agreed to shed nearly all of SABMiller’s European assets. Also , to appease U.S regulators and get their approval , AB InBev has agreed to sell SABMiller’s interest in MillerCoors LLC to joint -venture partner Molson Coors Brewing Co. In China, it has said it would sell SABMiller’s interest in the joint venture known as CR Snow to China Resources Beer  Holdings Co.

If this merger does happen, it has the potential to revolutionise the entire brewing industry.

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