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BRUSSELS — Anheuser-Busch InBev (A-B InBev) continues to prepare for its acquisition of SABMiller plc, this time reaching a deal to sell China's Snow Breweries for $1.6 billion.
Under the agreement, A-B InBev will sell SABMiller's 49-percent interest in China Resources Snow Breweries Ltd. (CR Snow) to China Resources Beer Holdings Co. Ltd. (CRB), which currently owns 51 percent of CR Snow.
The move is the next step in A-B InBev's "continued commitment to proactively address regulatory considerations in its recommended acquisition of SABMiller," the company said.
The transaction has been approved by CRB's board, as well as by its majority shareholder. No additional general meeting will be required for approval. Upon completion of the transaction, CR Snow will become a direct wholly-owned subsidiary of CRB.
The agreement is conditional on the successful closing of the $107-billion acquisition of London-based SABMiller by A-B InBev, which the companies announced on Nov. 11. In addition, it is subject to any applicable regulatory approval in China.
CRB's acquisition of SABMiller's stake in CR Snow is expected to close in conjunction with A-B InBev's acquisition of SABMiller.
In connection with this transaction, Lazard and Merrill Lynch International are acting as financial advisors to A-B InBev. Sullivan & Cromwell, Freshfields Bruckhaus Deringer LLP and Fangda are acting as legal counsel.