Anheuser-Busch InBev’s planned $106 billion acquisition of London-based SABMiller hit a roadblock in South Africa, where regulators there need more time to sign off on the “Mega Beer” merger.
Bloomberg has reported the South Africa’s Competition Commission will miss a deadline this week to complete its probe of the proposed merger, thus resulting in a probe that will take more time before AB InBev BUD -1.59% gets local approval for a deal that will combine the world’s two largest brewers.
For the deal to go through, AB InBev is aiming to win over regulators in several markets, most notably the U.S. and China where divestitures are needed to win government approval for a merger that will result in a massive producer generating about one out of every three beers made globally.
But for South Africa the deal is also important. SABMiller’s South African Breweries was founded in 1895 and is the nation’s largest brewer and leading distributor of beer and soda. It operates seven breweries across the nation as well as hop production company and other beer-related farming assets.
To win approval in the U.S. and China – the two markets analysts most fretted about – AB InBev has announced separate deals to potentially sail past antitrust worries. In November, AB InBev agreed to sell the 50% stake that SABMiller owns in MillerCoors to Molson Coors tap-a in a $12 billion transaction, while in March, it agreed to sell SABMiller’s stake in a Chinese brewer for $1.6 billion. Both of those deals are contingent to the successful closing of the bigger SABMiller deal.
By John Kell
Source: Fortune
Temperature-controlled storage and logistic solution provider, Emergent Cold LatAm, has opened ‘Chile’s largest’ frozen food warehouse. Located in Talcahuano, a region renowned for its seafood and fruit production and exports, the warehouse represents a strategic enhancement of the local cold chain infrastructure.
Never Never gin will be sold through Asahi’s alcohol division, Carlton & United Breweries (CUB). According to the company, the acquisition – which won’t impact daily operations – will enable Never Never’s premium gin to reach a wider customer base while enhancing support and product offerings for existing customers.
Coca-Cola Europacific Partners (CCEP) announced today the forthcoming departure of Nik Jhangiani, senior vice president and chief financial officer, with plans underway to identify his successor. Jhangiani will be stepping down to assume the role of CFO at Diageo later this year.
