China: Beer megadeal said to be close to gaining approval

Anheuser-Busch InBev NV’s $107 billion acquisition of SABMiller Plc is nearing Chinese approval after the companies agreed to divest the maker of Snow beer, the world’s top-selling brand, people familiar with the matter said.

Approvals for both transactions could come as soon as this month based on typical review timelines, clearing one of the final hurdles for the biggest beer deal in history.

Though China’s Ministry of Commerce may attach some conditions to the deal, including the Snow divestiture, regulators see no major hurdles, said one of the people. Some local beermakers told the ministry that they don’t object to the takeover as it won’t have a big impact on the Chinese market, another person said.

SABMiller shares closed up 3 pence to 4,306 pence in London, erasing an earlier decline. AB InBev shares fell less than one percent to 114.95 euros in Belgium.

The merged company would redraw control of the global beer market. Following divestitures, the deal will keep Budweiser, Beck’s and Stella Artois under AB InBev’s roof, while ceding control of brands including Miller in the US and Peroni and Pilsner Urquell in Europe.

Full Content: Bloomberg

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