Megabrew: South African regulator provisionally clears AB InBev’s £71bn takeover of SABMiller
Anheuser-Busch InBev’s megabrew takeover of SABMiller took a step closer to completion today after the Competition Commission of South Africa provisionally approved the £71bn deal.
The South African antitrust regulator has recommended to the country’s Competition Tribunal, which will make the final decision on the merger, that the proposed tie-up be approved with conditions.
The conditions include a requirement for SABMiller’s stake in liquor maker Distell to be sold off and that the merged company make a merged 1bn rand (£43.3m) investment in the country’s agriculture sector. In addition, the companies have also agreed to submit plans within two years of the merger to maintain black economic empowerment participation in the company.
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The set of conditions also includes a binding agreement that no South African employee can lose their jobs as a result of the merger, which AB InBev also offered in a package of commitments to the country’s competition watchdog in April.
In a statement AB InBev, the world’s largest brewer, described the recommendation as an “important milestone” in the process of securing regulatory approval.
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In December, AB InBev won approval to list on the Johannesburg Stock Exchange in a move it said demonstrated its “commitment” to South Africa, where SABMiller is an important player in the national drinks market.
Last week EU antitrust regulators waved through the megabrew deal. In a bid to secure approval from European authorities, AB InBev has pledged to sell SABMiller’s Eastern and Central European drinks brands and has agreed a £1.8bn deal to sell the Peroni, Grolsch and Meantime brands to Japan’s Asahi Group.