Market Overview

Anheuser Busch Inbev-SAB Miller Merger One Step Closer: EU Approves Acquisition

Anheuser Busch Inbev-SAB Miller Merger One Step Closer: EU Approves Acquisition

Shares of Anheuser Busch Inbev SA (ADR) (NYSE: BUD) traded up roughly 2.75 percent on Tuesday afternoon after the European Commission, the European Union’s antitrust agency, granted antitrust approval of its SABMiller plc (ADR) (OTC: SBMRY) acquisition under the condition that the latter divests almost all of its European beer assets.

As one might expect, Anheuser Busch Inbev agreed to sell SABMiller’s businesses in the Czech Republic, Hungary, Poland, Romania and Slovakia in order for one of the largest transactions in corporate history (expected to surpass $100 billion) to go through.

According to people familiar with the issue, AB Inbev will vend SABMiller’s Peroni, Grolsch and Meantime brands to Japan's Asahi Group Holdings Ltd for roughly $2.9 billion; the company still needs to find buyers for SABMiller’s remaining European assets.

Related Link: Anheuser Busch Will Divest SABMiller's Central And Eastern European Business As Part Of Merger Process

Already the largest beer company in the world, AB Inbev will control roughly one third of the global beer market after the merger. According to experts’ calculations, the firm should sell double the amount of beer than its closest rival, Heineken N.V. (OTC: HINKY).

However, it should be noted that, while the EU, Australia and South Africa have already approved the merger, antitrust authorities in the United States and China have yet to give their blessing for the union.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.


Related Articles (BUD + SBMRY)

View Comments and Join the Discussion!

Posted-In: Asahi Group Holdings GrolschM&A News Eurozone Markets Movers Trading Ideas Best of Benzinga