AB InBev seeks to sell SABMiller's Grolsch, Peroni brands

Thu Dec 3, 2015 5:36am EST
 
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By Philip Blenkinsop

BRUSSELS (Reuters) - Anheuser-Busch InBev (ABI.BR: Quote) is looking to sell SABMiller's SAB.L Grolsch and Peroni brands to address potential concerns among European competition regulators over its planned acquisition of the world's second largest brewer.

The sale of the brands and their related businesses in Italy, the Netherlands and Britain would be conditional on AB InBev acquiring SABMiller in a cash and share offer currently worth some 72 billion pounds ($108 billion).

AB InBev said on Thursday it was also looking to sell Meantime Brewing Company, the London-based craft brewer that SABMiller announced it was buying only in May.

The Belgium-based brewer has already agreed to sell SABMiller's majority-stake in U.S. venture MillerCoors to Denver-based venture partner Molson Coors (TAP.N: Quote) for $12 billion.

"Like the previously announced disposal of the Miller business to Molson Coors, these steps reflect AB InBev’s pro-active approach to addressing potential regulatory concerns," AB InBev, the world's largest brewer, said in a statement.

Potential buyers for Grolsch and Peroni, which could each be worth some $1 billion, are not obvious, with obstacles for major brewing groups like Heineken (HEIN.AS: Quote) and Carlsberg (CARLb.CO: Quote). That could leave private equity groups as the most likely bidders.

Facing a $3 billion break-up clause, AB InBev has a powerful incentive to facilitate the SABMiller deal. With Stella Artois and Beck's, AB InBev already has European lagers that it is marketing internationally.

"What they really want is Africa and bits of Latin America. If you said they couldn't include some SABMiller brands in Europe, you'd bet they'd take that," said Societe Generale beverage analyst Andrew Holland.   Continued...

 
The logo of Anheuser-Busch InBev is pictured outside the brewer's headquarters in Leuven, November 10, 2015. REUTERS/Eric Vidal