AB InBev Sells Off SABMiller’s Chinese Unit as Blockbusting Tie-up Moves Closer

02 Mar 2016 --- AB InBev has made its latest move to speed up regulatory approval of its takeover of SABMiller, after it agreed to sell SABMiller’s Chinese beer business to China Resources Beer Holdings.
 

China Resources Beer Holdings, a government-backed brewer, is to pay $1.6 billion to buy out SABMiller’s 49 per cent stake in the pair’s CR Snow joint venture.

Experts had expected that AB InBev would try to arrange to sale of SABMIller’s stake in Snow since it announced its blockbusting $108 billion takeover of SABMiller, the world’s largest beer deal.

It believed that by holding on to SABMiller’s Chinese business could have slowed up getting the green-light from regulators for the deal.

It mirrors a stance that AB InBev has taken globally.

It has also previously sold off SABMiller’s interest in MillerCoors LLC to Molson Coors Brewing, in order to win regulatory approval for the deal.

AB InBev said: “This announcement represents the next step in AB InBev’s continued commitment to proactively address regulatory consideration in its recommended acquisition of SABMiller.”

The acquisition of Snow means that China Resources become the biggest brewer in China, boasting around a third of the market.

But beer production in China has been slowing of late, according to local experts.

China Resources had the first option to buy SABMiller’s interest in CR Snow, which will now become a wholly owned subsidiary of the Chinese company.