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South Africa: Regulator gives backing to AB InBev takeover of SABMiller

By  |  May 31, 2016

The world’s largest brewer, Anheuser-Busch InBev, has gained conditional approval from South African anti-trust regulators for its $100bn-plus acquisition of SABMiller on the condition that no South African employees would be laid off as a result of the deal.

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    The Competition Commission ruling brings a step closer the creation of the world’s biggest brewing group, which would make nearly a third of the world’s beer.

    The commission said it had recommended to the Competition Tribunal, which has the ultimate say, that the deal be “approved with conditions”. Its recommendations usually meet the tribunal’s approval.

    Other conditions of the deal include a requirement the merged entity sell off SABMiller’s stake in liquor maker Distell, and that it make a 1bn rand ($43.9m) investment in South African agriculture.

    The companies have also agreed to submit within two years of the merger “black economic empowerment plans setting out how the merged entity intends to maintain black participation in the company, including equity”, the commission said in a statement.

    Full Content: The Guardian

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