State-backed China Resources Snow Breweries Ltd (CRB, 華潤啤酒) has agreed to buy out SABMiller’s stake in the maker of Snow (雪花啤酒), the world’s best-selling beer, Anheuser-Busch InBev on Tuesday said.
Anheuser-Busch InBev is hoping the sale to CRB would help to ease regulators’ concerns about its nearly US$104 billion merger with SABMiller, which owns a 49 percent stake in CR Snow (華潤雪花). The deal would value SABMiller’s stake at about US$1.6 billion.
Since their deal was announced last year, the two brewers have worked to win over regulators.
Photo: AFP
The transaction would give the Chinese business full ownership of a beer brand that outsells better-known lines such as Bud Light.
“This agreement is subject to any applicable regulatory approval in China, and AB InBev and CRB will work closely together through any such process,” Anheuser-Busch InBev said in a news release.
The sale of SABMiller’s stake in the joint venture in China had been anticipated by analysts since the Anheuser-Busch InBev deal was announced and is one of several transactions being undertaken in order to appease regulators.
The combination of Anheuser-Busch InBev and SABMiller would create a beer industry giant that would have annual revenues of about US$64 billion and that would account for about 30 percent of global beer sales.
In November last year, SABMiller agreed to sell its 59 percent stake in MillerCoors in the US to its joint venture partner Molson Coors Brewing for about US$12 billion. That deal includes the global rights to the Miller brand and would make Molson Coors the second-largest brewer in the US, behind Anheuser-Busch InBev.
Last month, Asahi Group Holdings of Japan agreed to a binding offer to buy beer brands Peroni and Grolsch, as well as certain European operations of SABMiller, for 2.55 billion euros (US$2.77 billion).
The Molson Coors, Asahi and Snow transactions are all contingent on the SABMiller-Anheuser Busch InBev merger closing.
The Snow transaction has been approved by CRB’s board of, as well as by its majority shareholder. After the deal’s closing, CR Snow would become a direct wholly owned subsidiary of China Resources Beer.
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