AB InBev appease EU competition authorities

File photo illustration of beer flowing from a bottle of Stella Artois into a glass, seen against a SAB Miller logo. REUTERS/Dado Ruvic.

File photo illustration of beer flowing from a bottle of Stella Artois into a glass, seen against a SAB Miller logo. REUTERS/Dado Ruvic.

Published Apr 29, 2016

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Brussels - Anheuser-Busch InBev, the world's largest brewer, intends to sell the Eastern European brewing assets of SABMiller to secure regulatory approval for its $100 billion-plus takeover of its rival.

AB InBev has already lined up Japan's Asahi Group Holdings to buy SABMiller's Grolsch, Peroni and Meantime brands for 2.55 billion euros ($2.90 billion) and said on Friday that it has put up for sale SABMiller's activities in the Czech Republic, Hungary, Poland, Romania and Slovakia.

It has notified the European Commission, the European Union's antitrust regulator, which is set to deliver its verdict by May 24.

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AB InBev said in a statement that the disposal includes a number of top brands in their markets, such as Pilsner Urquell in the Czech Republic and Dreher in Hungary. The company said it expects to attract considerable interest from potential buyers.

The sale would be conditional on AB InBev concluding its purchase of SABMiller, expected in the second half of this year.

The proposed divestment could ease regulatory approval, though eastern Europe has not been part of AB InBev's core business.

Read also:  AB InBev accepts Asahi’s offer

After InBev's 2008 takeover of Anheuser-Busch, the company sold its operations in Hungary, Romania, the Czech Republic and a handful of smaller eastern European countries for $2.2 billion to CVC Capital Partners. The business, including Staropramen lager, is now owned by Molson Coors.

AB InBev has operations in Ukraine and Russia.

REUTERS

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