AB-InBev’s sale of two breweries could collapse again

What a mess. AB-InBev’s sale of two of its German breweries and brands has fallen through for the second time as the buyer, a tiny German outfit by the name of CK Corporate Finance, again failed to meet its obligations.

The deal, which would have seen CK Corporate Finance buy the Diebels and Hasseröder breweries cum brands for an estimated EUR 200 million from AB-InBev, was signed in January 2018 and was expected to be completed by mid-year.

At the beginning of July, AB-InBev pulled the plug on the transaction because the buyer had been unable to cough up the required money – despite substantial support from AB-InBev, media said. Apparently, CK Corporate Finance was given another deadline – the beginning of September. But it is considered unlikely that it will meet the deadline this time.

All this makes you wonder where Deutsche Bank, Germany’s biggest lender and advisor to AB-InBev, was looking when it vetted CK Corporate Finance and concluded that it had the wherewithal for a deal of this size.

Reportedly, AB-InBev is already in talks with other interested parties. According to AB-InBev, these parties are familiar with the business and therefore negotiations can be conducted quickly. It is still AB-InBev’s intention to sell Diebels and Hasseröder in one package.

Wait and see.