China: China Resources Beer says AB InBev, SABMiller deal will be cleared by competition authority soon

An executive at China Resources Beer said on July 6 he believes the country’s competition authority is set to clear Anheuser-Busch InBev’s (AB InBev) takeover of SABMiller, City A. M. reported.

“We don’t see any obstacle so far in getting a green light from China authorities,” chief financial officer Tomakin Lai said, reported Reuters. “We are confident that the deal can eventually get approval.”

It is unclear when the Chinese authorities will publish a final decision on the deal.

China Resources Beer also said on July 5 it is seeking to raise $1.2 bln in a discounted Hong Kong share sale to part-fund the purchase of SABMiller’s stake of their CR Snow joint venture.

China and the US are the two major markets that still have to clear the takeover, dubbed Megabrew, which will be the largest British corporate merger if it occurs later this year.

"We continue to engage proactively with the relevant authorities in China to address their concerns in order to obtain the necessary clearances as quickly as possible," an AB InBev spokesperson told City A.M.

Last week, AB InBev said it was “well on track” to close the £71 bln deal in the second half of 2016 after the South African competition authority became the 16th jurisdiction to wave through the deal.

This week the merger also looked close to being cleared with Zimbabwe's Competition and Tariff Commission with conditions.

In Africa, the deal has also been cleared by antitrust regulators in Botswana, Kenya, Namibia, Swaziland and Zambia. It was cleared by the EU in late May and has been cleared elsewhere in countries including India, Australia and Mexico.

06 July, 2016