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Multinational brewing and beverage company AB InBev has submitted an updated package of commitments to the European Commission (EC) in which it has offered to divest the entirety of JSE-listed SABMiller’s businesses in central and eastern Europe.
This was in addition to the agreed sale of Peroni, Grolsch and Meantime, as well as their related businesses, to Toyko, Japan-based brewery and soft drinks company Asahi, SABMiller informed shareholders on Friday.
AB InBev’s submission and updated package of commitments was part of its approach to proactively address potential regulatory considerations. In line with its ambition to complete the acquisition of SABMiller during the second half of 2016, AB InBev had offered these commitments in Phase 1 of the EC’s enquiry. The EC was expected to publish the outcome of its Phase 1 investigation by May 24.
As part of its updated package of commitments, AB InBev was offering the sale of Dreher Breweries in Hungary, Kompania Piwowarska in Poland, Plzenský Prazdroj and Pivovary Topvar in Czech Republic and Slovakia, and Ursus Breweries in Romania. “These businesses include a number of leading brands in their markets and AB InBev expects to attract considerable interest from potential buyers,” SABMiller noted.
The proposed divestments were subject to review and approval by the EC. Any sale would be conditional upon completion of the AB InBev acquisition of SABMiller and would be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representative bodies. Any sale would be complete after the completion of AB InBev’s proposed acquisition of SABMiller.
SABMiller CEO Alan Clark said the company’s central and eastern European businesses had been a core part of the company’s growth story since it first embarked on its international expansion strategy over 20 years ago.
“We are very proud of these businesses, their brands and the people that have made them the successes they are today, and we will continue to grow and support them throughout this process.”