Sector News

EU regulators to conditionally clear AB Inbev, SABMiller deal

May 23, 2016
Food & Drink

Brewer Anheuser-Busch InBev is set to win conditional EU approval for its $100 billion-plus takeover of SABMiller after agreeing to substantial asset sales, three people familiar with the matter said on Friday.

The Belgium-based maker of Budweiser, Corona and Stella Artois is looking to boost its presence in Africa and Latin American countries to offset weaker markets such as the United States, where drinkers are shunning mainstream lagers in favor of craft brews and cocktails.

The takeover, one of the biggest in the corporate world, will give AB InBev a third of the global beer market.

AB InBev, already the biggest brewer in the world, managed to allay EU competition concerns by agreeing to sell SABMiller’s Peroni, Grolsch and Meantime beer brands to Asahi Group Holdings Ltd, the people said.

Last month, the company also announced plans to sell SABMiller’s business in Czech Republic, Hungary, Poland, Romania and Slovakia to appease lingering worries from the European Commission.

The Commission and Ab Inbev declined to comment.

The EU competition enforcer is scheduled to decide on the deal by May 24. Australian and South African authorities have already given the green light.

AB Inbev is also selling SABMiller’s stake in U.S. joint venture MillerCoors to Molson Coors Brewing (TAP) and SABMiller’s stake in its CR Snow venture to China Resources Beer, to address competition concerns in other regions.

By Foo Yun Chee in Brussels and Martine Geller in London

Source: Reuters

comments closed

Related News

November 27, 2022

Cargill to appoint Brian Sikes as president and CEO

Food & Drink

Cargill will appoint Brian Sikes as its president and chief executive officer on 1 January 2023. The soon-to-be CEO, currently holding the chief operating officer title, has worked at Cargill for 31 years. Dave MacLennan, who has served as Cargill’s CEO since 2013, will assume the role of executive chair of the company’s board of directors.

November 27, 2022

Wellness, self-expression drive the latest trends in colors and flavors

Food & Drink

Comforting colors, feel-good flavors, and unique food and beverage experiences will resonate most with consumers in the new year, according to ADM’s latest Flavor and Color Outlook. ADM anticipates that 2023 will be the year of self-expression, and the company identified four trends that are sure to stand out.

November 27, 2022

Nespresso unveils home-compostable coffee capsules in partnership with Huhtamaki

Food & Drink

Nestlé’s Nespresso brand will pilot home-compostable coffee capsules on the Nespresso Original system in France and Switzerland from spring 2023 before further launches in several other European countries within a year. The paper-based capsules are touted as a breakthrough in packaging technology after three years of R&D.