AB InBev to divest seven of its beer brands to CCU in Argentina

AB InBev has agreed to transfer seven of its beer brands in Argentina to Compania Cervecerias Unidas S.A. (CCU) as part of a post-merger condition for its takeover of SABMiller in 2016, Argentina’ production ministry announced on Wednesday.

As part of the proposed divestment by AB InBev which received the blessing of the Argentine National Competition Defense Commission, the brewer will transfer seven of its brands, notably – Isenbeck, Dioasa, Norte, Iguana and Baltica beer brands, as well as the licenses to Warsteiner and Grolsch brands to CCU, a Chilean brewer with operations in Argentina.

CCU, in turn will give the Argentine rights to Budweiser brand to AB InBev which markets the brands around the globe. CCU will get $400 million in payment over three years from AB InBev.

CCU said in a statement in September it had agreed to cede Budweiser rights to Ambev, the local unit of AB InBev in Argentina in exchange for an expected $306 million payment.

The Argentine Production Ministry said that without the divestment, AB InBev would have controlled 85% of Argentina’s beer market. The Belgian brewer also controls Quilmes, Argentina’s most popular beer brand.

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