The U.S. Department of Justice (DOJ) announced that it has granted conditional approval with Anheuser-Busch InBev for the completion of its $107 billion acquisition of SABMiller.
The deal has already gained approval in Australia, South Africa, and across Europe, and the approval from the U.S. brings the transaction, which still needs approval from China, closer to being finalized.
Under the terms of the agreement with the DOJ, Ab InBev agrees to sell SABMiller’s entire U.S. business, including its stake in MillerCoors and to in no way restrict independent distributors from promoting its rival beers including craft beers or foreign imports.
Molson Coors has agreed to pay $12 billion for AB InBev’s 58% stake in MillerCoors according to USA Today, giving it Miller Light and Coors Light, the second and fourth highest selling beers in the US as well as giving it the rights to the Miller brands outside of the U.S. The deal however, will leave AB InBev with the Budweiser, Beck’s, and Stella Artois brands.
“The two largest U.S. brewers – ABI and MillerCoors – will now remain independent competitors after the deal,” said Deputy Assistant Attorney General Sonia Pfaffenroth of the Justice Department’s Antitrust Division in a department statement. “The settlement also preserves the ability of smaller brewers – including brewers of craft and import beers – to compete against ABI by protecting their access to important distribution networks.”
“With today’s agreement, we have taken a significant step forward on the transaction, which will create the world’s first truly global brewer,” AB InBev Chief Executive Officer Carlos Brito said in a statement, however, the deal still needs to secure approval from China.
Approval from Beijing could not be far off however, after the companies agreed to divest Snow beer, the top selling beer in the world to China Resource Beer for $1.6 billion reports Bloomberg. With no additional hurdles to be cleared, both deals are expected to gain Chinese approval within the month.