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Bids, Mergers and Takeovers

SABMiller, InBev merger gets US DOJ approval

21 July 2016 07:19

SABMiller said the US Department of Justice (DOJ) has given its clearance for the proposed combination of it and AB InBev.

As part of the consent decree and consistent with AB InBev's approach to proactively address potential regulatory concerns, AB InBev has agreed, among other conditions, to divest SABMiller's US interest in MillerCoors to Molson Coors.

"This divestiture, which was previously announced between AB InBev and Molson Coors, is conditional on the successful closing of the combination of AB InBev with SABMiller," the company said.

Separately, SABMiller said its Q1 was another quarter of good underlying momentum for our subsidiaries with continued delivery of our strategic priorities, in particular Europe, South Africa, Colombia, Peru and Australia delivered good growth.

"This was Our performance was tempered by a more challenging quarter in some markets in the rest of Africa, where volume was negatively impacted by economic volatility and challenging trading conditions," said CEO Alan Clark in a statement.

"We also continued to face trading headwinds in our associates' and joint ventures' key markets such as China, Angola and the USA."

HIGHLIGHTS:

− Group NPR grew by 2% driven by price and mix realisation. Beverage volumes and lager volumes were in line with the prior year, soft drinks volumes were up 2% and other alcoholic beverage volumes were down 11% driven by a decline in Africa.

− subsidiaries continued to perform strongly, with NPR growth of 7% supported by beverage volume growth of 4%, with lager volumes up 5%.

− For associates and joint ventures, group NPR, beverage volumes and lager volumes declined by 4%, 4% and 5%, respectively, reflecting continued industry trends in the USA and macro-economic and trading headwinds in the major markets of our associates, in particular China, Angola and Turkey.

− Premium lager brand NPR growth was 10%, supported by global lager brands NPR growth of 5%.

− Soft drinks volumes grew by 2%, with growth in Africa and Europe partly offset by a decline in Latin America.

− On a reported basis, group NPR declined by 4% due to the adverse translational impact on our results of the depreciation of our key operating currencies against the US dollar.

Story provided by StockMarketWire.com

Related Company: SAB

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