AB InBev agrees to sell SAB Miller’s China market to Chinese government
Belgian beverage giant AB InBev says it will allow a Chinese Government owned company to acquire SABMiller’s Chinese beer business if AB InBev itself can acquire SABMiller.
AB InBev last week revealed it will allow China Resources Beer Holding Co. to purchase SABMiller’s 49 per cent interest in Chinese beer company CR Snow. China Resources Beer Holding has owned the other half of the company since 1994.
China Resource Beer Holding will be required to pay US$1.6 billion to take complete control of CR Snow.
The acquisition is however dependent on AB InBev’s ability to acquire SABMiller for approximately US$108 billion. AB InBev says it is confident this acquisition will be approved and finalised before the end of 2016.
“The agreement with China Resources Snow Breweries is conditional on the successful closing of the recommended acquisition of SABMiller by AB InBev as announced on 11 November 2015, which itself contains certain regulatory pre-conditions and conditions,” a statement from AB InBev said.
AB InBev is the largest beer company in the world and is responsible for over 200 beer brands. Some of its beers are sold in Australia through third-party distributors include Corona, Stella Artois and Budweiser.
SABMiller has an 89 per cent market share of the South African beverage industry. In
The Australian Competition and Consumer Commission (ACCC) is currently investigating the proposed acquisition of SABMiller by AB InBev.