Expert comment on AB InBev’s plan to sell SABMiller’s central and eastern European businesses

John Colley, of , is a Professor of Practice and researches large takeovers. He is also a former MD of a FTSE 100 company. Professor John Colley said: “Competition authority negotiations to win approval for AB InBev’s deal with SABMiller are continuing to take their toll. One major brand included in the latest sale is Pilsner Urquell and its worldwide rights outside the US. Japan’s Asahi might be a possible suitor following their acquisition of Grolsch and Peroni. Within the US Pilsner Urquell is going to Molson Coors as further efforts are made to gain competition authority approvals.”In North America, while MillerCoors has been sold to Molson Coors, there are continuing concerns from anti-trust authorities about control of distribution and AB InBev’s ability to prevent craft beers reaching drinkers. After the disposal of Miller AB InBev still has 45% of the US beer market. It is vertically integrated into wholesalers and many of the others represent AB InBev exclusively. One senses the game is not over either in the US or Europe and that further restrictions will be imposed. “AB InBev’s enormous market shares, post the SABMiller bid, have resulted in major disposals in the US, Europe, and China together with worldwide rights to a number of brands such as Grolsch, Peroni, Miller and now Pilsner Urquell. The main objective of the deal is stronger growth positions in Africa and Latin America. However, the extent of divestments elsewhere needed for competition authority approvals, is continuing to grow.”