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AB Inbev must sell SABMiller’s Distell share
South Africa’s Competition Commission has approved Anheuser-Busch InBev’s acquisition of SABMiller, provided the firm sells its stake in spirits producer Distell Group.
AB InBev can acquire SABMiller provided it sells its stake in Amarula owner, Distell
AB InBev must sell SABMiller’s 26% stake in South African wine, beer and spirits producer Distell – which owns Three Ships Whisky, Amarula and Bain’s Cape Mountain Whisky – within three years of closing the deal, estimated to be worth US$559 million.
Other conditions outlined by the regulator include protecting jobs, setting up a US$64m fund to support local farmers, which were agreed to by the government in April.
“These conditions address issues that were raised by various stakeholders since the announcement of the acquisition,” Competition commissioner Tembinkosi Bonakele said in a statement, as reported by Moneyweb.
“We are confident that these comprehensive conditions address the competition and public interest concerns emanating from the merger.”
AB InBev said it is “pleased” with the decision in a separate statement.