Published By : 03 Dec 2015 | Published By : QYRESEARCH
Anheuser-Busch InBev is seeking to sell SABMiller’s Peroni and Grolsch brands to address the potential issues that European competition regulators may have over the company’s planned acquisition of the second largest brewer in the world.
In doing so, the sale of SABMiller’s brands and their related companies in Italy, Britain, and Netherlands would put a condition on AB InBev to acquire SABMiller in a cash deal and share the offer which is currently worth US$108 bn.
Recently AB InBev started that it was also on the look out to sell Meantime Brewing Company, which is a London-based craft brewer to be acquired by SABMiller in May.
On the other hand, the Belgium-based brewer has declared that it would sell SABMiller’s majority stake in its American venture MillerCoors to its Denver-based partner Molson Coors for US$12 bn.
How it was previously announced of the Miller business to be disposed to Molson Coors, these measures are reflecting AB InBev’s pro-active strategy to address potential regulatory concerns, stated AB InBev, the largest brewer in the world.
Potential buyers for Peroni and Grolsch, each of the company that could be worth US$1 bn, are not obvious, which poses obstacles for other major brewing groups such as Carlsberg and Heineken. This leaves the possibility of private equity groups to be the likely bidders for the two SABMiller companies.
AB InBev that is undergoing a US$3 bn break-up clause, has the powerful incentive to enable the SABMiller deal. AB InBev, with a portfolio of European lagers Stella Artois and Beck is already marketing these lagers internationally.
What AB InBev is looking at is bits of Africa and Latin America. As stated by the beverage analyst at Societe General, if it is speculated that AB InBev could not include SABMiller brands in Europe, it is sure that it would.