From Bloomberg
The U.S. Justice Department is poised to approve Anheuser-Busch InBev NV’s takeover of SABMiller Plc in an agreement that may include measures to keep the beer behemoth from edging craft brewers from shelves, according to people familiar with the matter.
U.S. clearance of the $107 billion combination is on track for later this month, according to three people familiar with the process. The accord could include limits on the combined company’s ownership of distributors, said one of the people.
U.S. antitrust approval would bring the maker of Budweiser a step closer to completing the industry’s biggest merger ever and redraw control of the global beer market. The merged company will be followed by Heineken NV and Molson Coors Brewing Co. in the No. 2 and No. 3 spots by market capitalization. Following divestitures to win regulatory approvals, the deal will keep Budweiser, Beck’s and Stella Artois under AB InBev’s roof, while selling brands including Miller in the U.S. and Peroni and Pilsner Urquell in Europe.
Emerging Markets
The merger plan, which the two companies reached in November 2015 as a way to gain access to emerging markets, has already won antitrust approval in more than a dozen jurisdictions, including the European Union.
On Tuesday, South Africa’s Competition Commission recommended the deal with conditions, including a sale of SABMiller’s stake in local drinks producer Distell Group Ltd. AB InBev is still seeking approval in China, where it has agreed to sell SABMiller’s stake in Snow Breweries to joint-venture partner China Resources Beer (Holdings) Co.
Aggressive Approach
AB InBev took an aggressive approach in offering up asset sales to smooth approvals in an increasingly tough antitrust environment, said Andre Barlow, an antitrust lawyer at Doyle Barlow & Mazard PLLC in Washington who isn’t involved in the deal. Other proposed mergers have fallen apart in recent months after challenges by U.S. antitrust officials, including Halliburton Co.’s bid for Baker Hughes Inc. and Staples Inc.’s attempt to take over Office Depot Inc.
