AB InBev and SABMiller Megabrew Deal Gets Regulatory Approval in Australia

09 May 2016 --- Anheuser Busch's InBev's (AB InBev’s) planned $100 billion takeover of SABMiller has cleared another regulatory hurdle, after Australia's anti-trust regulator gave the deal the green light.

The Australian Competition and Consumer Commission (ACCC) said the so-called megabrew deal is unlikely to result in higher beer prices.

The ACCC said: "“The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers.The two largest suppliers of beer in Australia are Lion and SABMiller, which owns Carlton & United Breweries (CUB).”

"While AB InBev’s brands have been successful in Australia, particularly Corona, they have previously been distributed via either Lion or CUB. AB InBev has only a limited direct company presence in Australia and does not brew beer here."

Since the deal between the two beer giants was announced last year, AB InBev has made a number of concessions to ensure the deal does not get scuppered by regulators.

It has agreed to sell SABMiller brands Grolsch and Peroni and has agreed to a secondary listing on the Johannesburg stock exchange.

But US regulators have said the deal raises competition issues while the European Commission is expected to decide this month whether to give the thumbs up to the deal.