21 Jul 2016 --- Anheuser-Busch InBev has reached a settlement with US antitrust officials to green-light its $107bn acquisition of SABMiller by agreeing to give up ownership of the Miller brand and agreeing other measures to help competition from rivals.
The agreement effectively clears the way for the Budweiser and Bud Light's acquisition of SABMiller in the US.
The deal has also been granted in key European markets, but is still waiting approval in China.
The deal, dubbed “megabrew”, was first announced last year and has raised competition concerns that the new entity control too much of the beer market, effectively making up over 30 percent of the global beer market.
AB InBev has agreed with the US Department of Justice that, in order to ease competition concerns, it will sell SABMiller's stake in Miller (AB InBev had pre-empted this by announcing it would sell SABMiller's US business to Molson Coors).
Additionally, AB InBev said it will not undertake measures to limit independent beer distributors to sell beers from its rivals, such as premium craft beers; furthermore, AB InBev is also prevented from acquiring more brewers until the DOJ has reviewed any impact on the market.
“With today’s agreement, we have taken a significant step forward on the transaction, which will create the world’s first truly global brewer,” AB InBev chief executive Carlos Brito said in a statement.
“Our combination with SABMiller will bring more choice to more beer drinkers -- and extend the global reach of our iconic American brands, such as Budweiser -- in markets outside of the U.S.”
“The remedy we secured will help preserve and promote competition in the multi-billion dollar U.S. beer industry,” deputy assistant Attorney General Sonia Pfaffenroth, of the Justice Department’s antitrust division, said in a statement Wednesday afternoon.
“The two largest U.S. brewers – Anheuser-Busch and MillerCoors – will now remain independent competitors after the deal. The settlement also preserves the ability of smaller brewers – including brewers of craft and import beers – to compete against Anheuser-Busch by protecting their access to important distribution networks. Independent distributors that sell Anheuser-Busch’s beer will have the freedom to sell and promote the variety of beers that many Americans drink.”