World: AB InBev executives to dominate leadership positions after merger with SABMiller
Anheuser-Busch InBev NV executives will dominate leadership positions after taking over rival brewer SABMiller PLC, filling all but one position on an expanded executive management board, The Wall Street Journal reported.
Under a new structure announced on August 4, AB InBev said it would expand its executive management board to 20 people from 17 by adding geographic zones covering Africa, Australia and Colombia.
SABMiller’s Mauricio Leyva, currently the managing director of African subsidiary SAB Ltd., will lead AB InBev’s Middle Americas business from Mexico City and become the only SABMiller member of the combined brewer’s executive management board.
AB InBev’s dominance of leadership positions at the combined brewer fits its practice of placing its executives in a position to quickly install the Belgian brewer’s goal-oriented, cost-conscious culture after a takeover. It took a similar approach after buying Anheuser-Busch Cos. in 2008 and Grupo Modelo in 2013.
The world’s largest brewer said it would continue to be headquartered in Leuven, Belgium, and its global management team, including Chief Executive Carlos Brito and Chief Financial Officer Felipe Dutra, would continue to be based in New York. It will add zone headquarters in Johannesburg, Melbourne and Bogotá.
The company said it would keep SABMiller’s offices in Woking, U.K., open during a transitional period. A spokeswoman declined to say if there would be layoffs but noted that U.K. operations would be “significantly impacted” after the takeover.
The announcement comes less than a week after SABMiller’s board recommended AB InBev’s $100 billion-plus takeover. In September, both AB InBev and SABMiller shareholders are expected to vote on the deal, which is expected to close Oct. 10.
Gaining a foothold in the fast-growing African beer market was a major reason AB InBev pursued its No. 2 rival. The new Africa business will have operations across 16 African countries, helping diversify AB InBev’s business as it is struggling to sell Bud Light and Budweiser in the U.S., its largest market, and battling an economic downturn in Brazil.
Brazilian Ricardo Tadeu, the current president of AB InBev’s Mexico business, will lead the African business. He has overseen an increase in revenue from Mexican operations by 11% last year to $4.62 billion.
AB InBev said SABMiller’s Yokesh Maharaj, director of sales and distribution at SAB Ltd., will join Mr. Tadeu as the head of the combined brewer’s South Africa business.
The group will be overseen by an African board chaired by Jabu Mabuza, who is the current chair of Telkom SA and previously served on the board of Tanzanian Breweries Ltd. and Castle Brewing Co. The board’s structure is being finalized.
AB InBev said it would close SABMiller’s regional hubs in Miami, Hong Kong and Beijing. SABMiller General Counsel John Davidson, Africa Managing Director Mark Bowman and Human Resources Director Johann Nel will stay with the new company for at least six months.
The combined companies will have an estimated 27% share of the global beer market, more than double No. 2 rival Heineken NV’s 11% share, according to industry tracker Plato Logic.
04 August, 2016
