AB InBev looking to head off the regulator by selling off SABMiller beer brands
Anheuser-Busch InBev is looking to avoid a tussle with the regulator by selling off SABMiller’s Peroni and Grolsch brands, it’s being reported.
This month AB InBev made a formal offer to buy rival SABMiller for £44 a share.
The announcement comes after months of negotiations, and several extended deadlines from UK regulators.
The tie up, dubbed Megabrew, AB InBev will create the world’s biggest brewer with an annual revenue of £42bn.
There are concerns that if the combined company doesn’t shrink its portfolio the European competition authority could block ABInBev’s £71bn acquisition of rival SABMiller.
AB InBev, owner of the Stella Artois and Corona beer brands, is still deliberating on the sale with no price yet decided on, The Sunday Times reported.
A spokesperson for AB InBev said the company does not comment on market rumour or speculation.
It has been suggested Peroni and Grolsch could be snapped up by Dutch group Heineken, US-based Molson Coors or Ireland’s C & C Group.
AB InBev has already had to exit some of its ventures in the US to satisfy the regulator, with China also potentially causing problems.
The deal is expected to eventually go through, despite the combined company controlling a third of global beer supplies.
However, there are concerns the European Commission could take issue if it decides to look at individual product lines.
AB InBev is hoping to benefit to the tune of $1.4bn (£0.9bn) each year in synergies four years after the tie-up with the renownedly efficient SABMiller.
The established industry has been facing challenges from fast growing independent brewers benefitting from a rising customer demand for alternative beers.