ACCC approves AB Inbev’s $100 billion takeover
The Australian competition regulator has as expected cleared the way for beer giant Anheuser Busch Inbev’s $100 billion takeover of rival SABMiller.
The Australian Competition and Consumer Commission said the deal creating the biggest beer company in the world would not affect the local market.
“The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers," Australian Competition and Consumer Commission Chairman Rod Sims said in a statement.
He said the takeover would not change the market structure in Australia.
“The two largest suppliers of beer in Australia are Lion and SABMiller, which owns Carlton & United Breweries (CUB),’’ Mr Sims said.
“While AB InBev’s brands have been successful in Australia, particularly Corona, they have previously been distributed via either Lion or CUB. AB InBev has only a limited direct company presence in Australia and does not brew beer here.
“The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers.”
The ACCC noted that AB InBev has served notices to terminate agreements with Lion for the distribution of Corona and other AB InBev brands in Australia, all subject to certain notice periods.
The regulator said it had been concerned that, if these distribution agreements continued, the proposed acquisition may have increased the ability and incentive for coordination between Lion and AB InBev/SABMiller. However, with the termination of these distribution agreements, the relevant beer brands will in future be distributed in Australia by AB InBev/SABMiller.
“The termination of the distribution arrangements therefore resolved the ACCC’s competition concerns,” Mr Sims said.
Under the deal, a merged AB InBev/SABMiller would increase market share in Australia from 39 to 45 per cent. There would be an extra 8 per cent from the Corona it will take back from Lion, minus the 2 per cent it will lose when Asahi takes over Peroni.
By Leon Gettler, May 5th 2016
