AB InBev & SABMiller deal gets clearance in South Africa, with conditions

The Competition Tribunal of South Africa has approved AB InBev’s takeover of SABMiller, with conditions. 

The conditions include the sale of SABMiller’s stake in Distell Group Ltd.

It follows the recommendation for approval made by South Africa’s Competition Commission earlier this month, which suggested certain conditions for the deal, including the sale of the Distell stake.

AB InBev ‘delighted’

With the Competition Tribunal’s decision, the approval process in South Africa has been concluded. AB InBev says it is on track to close its takeover of SABMiller in the second half of 2016.

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 recognize 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, localization of inputs and production, support for small suppliers and the promotion of black economic empowerment.”

Approvals: what next?

With the green light from South Africa, AB InBev has now obtained approval in 16 jurisdictions. Clearance decisions, with or without conditions, have now been obtained in Asia-Pacific (Australia, India and South Korea); Africa (Botswana, Kenya, Namibia, South Africa, Swaziland, and Zambia); Europe (the EU, Albania, Turkey and Ukraine); and Latin America (Chile, Colombia and Mexico).

Approval in Ecuador is subject to certain conditions.

Decisions from regulators in the US and China are expected soon.

“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,” said a statement from the company.