InBev to sell big beer brands to Japan's Asahi
BUDWEISER and Stella giant Anheuser-Busch InBev has agreed to sell beer brands Peroni and Grolsch and Meantime and craft brewer Meantime to Japan’s Asahi for £2billion.
InBev will sell beer brands Peroni, Grolsch and Meantime to Asahi for £2billion
The premium brands were put up for sale to ease regulatory concerns over AB InBev’s £71billion takeover of FTSE 100 group SABMiller, which will boost its presence in African and Asian markets.
Asahi, known for its Super Dry beer, entered exclusive talks in February and its deal is dependent on the completion of AB InBev’s acquisition of SABMiller, which is set to go through in the second half of the year.
Its offer includes the Grolsch, Peroni and Meantime brands, as well as SABMiller’s Italian, Dutch and UK operations that make and distribute the brands.
It also includes global rights except in the US.
SAB only bought Meantime last year as it looked to reap the benefits of the growing craft beer market in the UK.
Asahi entered exclusive talks with InBev in February
AB InBev confirmed it was putting Meantime up for sale along with Peroni and Grolsch last December soon after formally agreeing its takeover of SABMiller following lengthy talks.
AB InBev’s takeover of SABMiller represents the biggest takeover of a UK-based firm as well as the fourth largest in global corporate history.
The so-called “megabrew” combination of AB InBev and SABMiller will create a global drinks powerhouse responsible for selling about one in three beers worldwide.
SAB bought Meantime last year to reap the benefits of the growing craft beer market in the UK
The two companies are forecasting cost savings of at least $1.4bn a year once the merger is completed.
AB InBev posted a four per cent fall in profits last year to $8.5bn on the back of lower sales in the US and Brazil, as well as the slowdown in China.
To ease competition fears, AB InBev has already announced the sale of SABMiller’s 58 per cent stake in its US joint venture MillerCoors for £8.3billion to partner Molson Coors.
AB InBev posted a four per cent fall in profits last year
It is also selling its 49 per cent interest in the Chinese firm behind Snow lager, the world’s best-selling beer.
The acquisition would be Asahi’s biggest, giving it a foothold in Europe where it has no presence while reducing its dependence on a domestic market where growth prospects are limited by a shrinking population.