Anheuser-Busch InBev’s (AB InBev) bid to take over SABMiller Plc and create a monolith brewer moved one step closer on Friday when China’s Ministry of Commerce gave the proposed merger a clearance.
AB InBev has since welcomed the conditional approval of China’s Ministry of Commerce of the company’s proposed combination with SABMiller plc.
In a statement, AB InBev said the Ministry of Commerce’s approval was a significant milestone for the transaction.
AB InBev agreed to sell SABMiller’s 49% stake in China Resources Snow Breweries to China Resources Beer, which currently owns 51% of CR Snow, in a bid to achieve the Ministry of Commerce’s conditional approval
AB InBev said this was consistent with its approach to proactively addressing potential regulatory concerns.
This divestment, which was previously announced between AB InBev and China Resources Beer, is conditional on the successful closing of the combination of AB InBev with SABMiller.
Following previously announced clearances in the EU, South Africa and the United States, all of the preconditions to the proposed combination have now been satisfied.
AB InBev, the maker of Budweiser, Stella Artois and Corona, has now obtained approval in 23 jurisdictions.
In the remaining jurisdictions where regulatory clearance is still pending, AB InBev will continue to engage proactively with the relevant authorities to address their concerns in order to obtain the necessary clearances as quickly as possible.
The brewer said it would continue to focus on taking the necessary steps in preparation for completing the combination as quickly as possible.
On Tuesday, AB InBev sweetened its bid by increasing its offer for SABMiller by £1 a share to £45 in cash, responding to investor concerns over the effect of the falling pound.