Argentina approves AB Inbev plan for post-merger beer divestments
14/03/2018 22:31
BUENOS AIRES, March 14 (Reuters) - Argentina's production
ministry said on Wednesday it had approved a proposal from
brewer Anheuser Busch InBev NV ABI.BR to divest seven of its
brands in the country as a condition for its 2016 takeover of
SAB Miller.
The $100 billion-plus takeover, which won overwhelming
backing from SAB Miller shareholders in 2016, was met with
similar conditions by antitrust regulators elsewhere, including
the United States and Europe.
As part of the proposal from AB Inbev and Chilean brewer CCU
CCU.SN , which has operations in Argentina, AB Inbev would
transfer the Isenbeck, Diosa, Norte, Iguana and Baltica brands,
as well as the licenses to Warsteiner and Grolsch, to CCU.
In turn, CCU would give the Argentina rights to the
Budweiser brand to AB Inbev - which markets the brand globally -
in exchange for a payment of up to $400 million over three
years.
CCU said in a statement in September it had agreed to cede
Budweiser rights to Ambev in exchange for an expected $306
million payment.
The proposal was spurred by an analysis into the SAB Miller
deal by the National Competition Defence Commission.
Without the conditions, AB Inbev would have controlled 85
percent of Argentina's beer market, the production ministry
said. AB Inbev also controls Quilmes, the South American
country's most popular brand of beer.
(Reporting by Luc Cohen; editing by Diane Craft)
((luc.cohen@thomsonreuters.com; +54 11 4318 0645; Reuters
Messaging: luc.cohen.thomsonreuters@reuters.net))