European Union Anti-Trust regulators, on Tuesday, said they have given their approval for the $108bn merger of two of the world’s biggest brewers, Anheuser-Busch InBev (AB InBev) and SABMiller.
However, the commission said the approval was contingent upon AB InBev divesting itself of SABMiller’s European assets.
International Breweries Plc, a SABMiller subsidiary has released its most recent financial results for the nine months ended 31 December 2015. It showed the brewer’s net profit rose 18% to N1.7bn, from N1.4bn recorded in the same period one year ago.
Pretax profit also rose by 7% to N2.4b, from N2.2bn in the same period in 2014.
The company also saw a top line growth of 7.49% to N16.4bn, from N15.3bn in the same period under review.
Anheuser-Busch InBev (AB InBev) has listed on the Johannesburg Stock Exchange (JSE) as it makes its South African presence as part of its takeover of SABMiller.
AB InBev’s corporate headquarters will remain officially in Belgium and New York, but its new inward secondary share listing in South Africa is because of SABMiller’s large presence in the country.
Anheuser-Busch InBev (AB InBev), the brewer in the middle of a historic merger with its smaller rival, SABMiller, has attracted a record $110bn in demand for its $46bn bond deal, as investors look to put their money into relative safety of high-grade US corporate debt at the start of a turbulent year for global markets.
A takeover bid of SABMiller’s two European brands appears to be brewing.
Asahi Group Holdings, Japan’s largest brewer, said on Tuesday that it was considering making a bid for Peroni and Grolsch brands, two of SABMiller’s prized European possessions.
The announcement sent Asahi’s shares tumbling by 2.4 per cent in early Tokyo Trading.
Anheuser-Busch InBev (AB InBev), the world’s largest beer company announced in December that as part of the pending merger with SABMiller, it would make a secondary inward listing on the Johannesburg Stock Exchange (JSE) on 15th January 2016.
A group of beer drinkers in the U.S. are trying to stop the merger between AB InBev and SABMiller, two of the world’s largest beer companies.
The group which number 23 filed a lawsuit against AB InBev over its $108bn deal to acquire SABMiller, claiming the merger would result in higher beer prices, lower beer quality and erosion of consumer choice as well as creating a monopoly in violation of U.S. anti-competition law.
The merger of the world’s two largest beer companies, AB InBev and SABMiller would likely bring about a more centralized and standardized operating model than a SABMiller culture that fostered regional independence, according to industry analysts.
The merger of two of the world’s largest beer companies, AB InBev and SABMiller, will have far reaching consequences for public health in emerging markets like Africa. This was the opinion of scientists writing in the British Medical Journal (BMJ).
AB InBev formally agreed to buy its smaller rival, SABMiller on 11th November, in a $108bn mega deal that would see it control 30 percent of global beer volumes.
While the brewer works out the finer details before the deal can be finalized, such as regulatory issues in some markets, there is the issue of how to resolve the ownership of their soft drinks assets. While both companies are known for their beer brands, they also bottle soft drinks in some key markets to complement their products.
