AB InBev to sell SABMiller’s stake in Snow to China Resources Beer
Snow is the world’s top selling beer by volume. SABMiller currently holds a 49% interest in CR Snow with China Resources Beer (Holdings) Co. Ltd holding the remaining 51%.
The sale, announced this morning, values SABMiller’s stake in CR Snow at $1.6bn. It will give China Resources Beer full ownership of the Snow beer brand.
Deal expected to complete in second half of 2016
The sale is part of AB InBev’s efforts to proactively address regulatory concerns over its recommended acquisition of SABMiller.
The sale of SABMiller’s stake in CR Snow is conditional on the successful closing of AB InBev’s acquisition of SABMiller, which was announced in November 2015. It will also be subject to regulatory approval in China, with AB InBev and China Resources Beer pledging to work closely together throughout the process.
The deal is expected to close in conjunction with AB InBev’s acquisition of SABMiller, which AB InBev has confirmed is on track for completion in the second half of 2016.
The tie-up between AB InBev, the world’s largest brewer, and SABMiller, the world’s second largest brewer, is set to create a new entity controlling around 30% of beer volumes. The need to meet regulatory approval, particularly in China and the US, is a key issue in its formation.
In the US, SABMiller’s 58% stake in MillerCoors is to be sold to Molson Coors in a transaction valued at $12bn.
In Europe, Japan’s Asahi Group Holdings has offered to buy SABMiller’s Peroni, Grolsch and Meantime brands (based in Italy, the Netherlands and London respectively) in a bid worth $2.9bn.