Budweiser brewer gets regulatory backing in China for SABMiller takeover

Budweiser brewer Anheuser-Busch InBev has cleared another major hurdle in its pursuit of SABMiller after winning regulatory backing in China.

Budweiser brewer gets regulatory backing in China for SABMiller takeover

Budweiser brewer Anheuser-Busch InBev has cleared another major hurdle in its pursuit of SABMiller after winning regulatory backing in China.

The takeover approach was given the green light by China's Ministry of Commerce after the Belgian brewer agreed to sell SABMiller's 49% stake in China Resources Snow Breweries to China Resources Beer.

It means the firm's £79bn swoop has now been approved in 23 jurisdictions worldwide, satisfying all pre-conditions of the deal.

The company said it is still aiming to complete the mega-merger to create the world's biggest drinks firm by the end of this year.

However, the tie-up hangs on a knife edge as SABMiller's investors mull over an increased offer made on Tuesday triggered by the collapse in the value of the pound after the Brexit vote.

Shareholders in SABMiller will now receive £45 a share, up from its earlier offer of £44, valuing SABMiller at about £79bn.

The pound has plunged in value versus the US dollar since the June 23 vote, falling more than 10% to $1.31.

Concerns about the deal have been raised by investors, such as Elliott Management, Davidson Kempner Capital Management and Aberdeen Asset Management.

However, other shareholders, including New York-based investment management firm Twin Capital Management, want the takeover to go through.

The announcement comes as AB InBev reported a 4.3% rise in operating profits for the second quarter to $4.01bn following strong sales of Budweiser, Corona and Stella Artois.

It said the three brands saw revenue growth of 8.4% over the period, with Corona alone notching up a 13% rise compared to the second quarter of last year.

AB InBev, the world's largest brewer, has already moved to sell SABMiller's Peroni, Grolsch and Meantime brands to Japanese firm Asahi. It has also signalled its intent to sell SABMiller's businesses in central and eastern Europe.

SAB employs around 69,000 people in more than 80 countries and has global annual sales of more than $26bn.

more courts articles

Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman
Coronation Street actor William Roache (91) given three months to settle tax debt Coronation Street actor William Roache (91) given three months to settle tax debt

More in this section

Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
Lord Rothschild death Tony Blair leads tributes on death of financier Rothschild at age 87
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited