AB InBev faces two more hurdles before SAB can say cheers

(Left to right) Donna Oosthuyse, director of Capital Markets at JSE, AB InBev CEO Carlos Brito and JSE CEO Nicky Newton-King. (Supplied)
(Left to right) Donna Oosthuyse, director of Capital Markets at JSE, AB InBev CEO Carlos Brito and JSE CEO Nicky Newton-King. (Supplied)

Cape Town – The final countdown has started for China and the US to approve Anheuser-Busch (AB) InBev’s R1.5trn takeover of SABMiller, with South Africa ticking off the latest box on Thursday.

READ: AB InBev wins Competition Tribunal approval for SABMiller takeover

China and the US are very close to giving approval, with AB InBev offloading SABMiller's Miller brands in the US and Snow in China.

AB InBev [JSE:ANB] has now obtained approval in 16 jurisdictions, the company said on Thursday in a statement. Approval in Ecuador is subject to certain conditions.

 “Clearance decisions, with or without conditions, have now been obtained: in Asia-Pacific (Australia, India and South Korea); in Africa (Botswana, Kenya, Namibia, South Africa, Swaziland, and Zambia); in Europe (the EU, Albania, Turkey and Ukraine); and in Latin America (Chile, Colombia and Mexico).

“In the remaining jurisdictions where regulatory clearance is still pending, AB InBev will continue to engage proactively with the relevant authorities to obtain the necessary clearances as quickly as possible.”

This follows the announcement by South Africa’s Competition Tribunal, which approved the deal with conditions that were mostly similar to the ones agreed to by the Competition Commission and South Africa’s government.

AB InBev said on Thursday that it is pleased it had approved with conditions its proposed combination with SABMiller [JSE:SAB].

“The Competition Tribunal's approval represents the conclusion of the merger approval process in South Africa and confirms that AB InBev is well on track to close the combination in the second half of 2016,” the company said.

Carlos Brito, CEO of AB InBev, said: "We are delighted by the Competition Tribunal's decision to approve our proposed combination with SABMiller in South Africa, a market that would play a critical role in the combined company.

“We recognise South African Breweries' important contribution to the country's economy and society and look forward to building on this through the commitments we have made on jobs and employment, localisation of inputs and production, support for small suppliers and the promotion of black economic empowerment."

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.08
(-0.27)
ZAR/GBP
20.73
(-0.31)
ZAR/EUR
18.32
(-0.17)
ZAR/AUD
11.67
(-0.09)
ZAR/JPY
0.15
(-0.19)
Gold
1850.24
(-0.02)
Silver
25.38
(-0.10)
Platinum
1089.00
(-0.55)
Brent Crude
55.81
(-0.07)
Palladium
2314.00
(+0.15)
All Share
63761.31
(-0.25)
Top 40
58566.63
(-0.26)
Financial 15
11766.88
(+0.24)
Industrial 25
86914.67
(+0.01)
Resource 10
61402.64
(-0.83)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 748 votes
No, I did not.
52% - 1865 votes
My landlord refused
28% - 996 votes
Vote