China OKs InBev’s purchase of Anheuser-Busch but with some restriction
China’s Ministry of Commerce said on 17 November 2008 it approved InBev’s acquisition of Anheuser-Busch – albeit with some restrictions on the new firm’s investments in China.
The new company will not be allowed to raise the 27 percent stake in Tsingtao Brewery held by Anheuser-Busch, nor can it increase InBev’s 28.56 percent stake in Zhujiang Brewery, the ministry said in a statement.
It also said the new company will not be allowed to take stakes in Beijing Yanjing Brewery and China Resources Snow Breweries, which produces Snow Beer, citing concerns over competitiveness.
China Resources Snow Breweries is a joint venture between London-based SABMiller and China Resources Enterprise Ltd.
The approval from the Chinese government moves Belgian-Brazilian InBev another step closer to acquiring the iconic American brewer for USD 52 billion in an all-cash deal that will create the world’s largest brewer by sales.
SABMiller’s Snow brand is now the world’s number two beer brand. The world’s best-selling beer by volume is Bud Light, followed by Snow and Budweiser according to researchers Plato Logic. Number four ranks AmBev’s Skol, followed by Corona, Heineken, Brahma, Coors Light, Miller Lite and Tsingtao.
