E-Malt.com News article: 2574

Belgium, Brussels: John Brock, Interbrew SA CEO said there is a risk that its unit Labatt USA could be excluded from the merger with Cia de Bebidas das Americas (AmBev), according to AFX News. AFX News Brock told reporters that this is a possibility if Interbrew does not reach an agreement in its court case with Grupo Femsa, Mexico's second largest brewer. "The worst-case scenario would be (a) if the court grants an injunction or if (b) it didn't reach an agreement with Femsa," Brock said. "If we didn't reach an agreement, Labatt USA would be excluded from the transfer of Labatt to AmBev," he said. But he added: "This is such a small percentage of the overall volume that it wouldn't affect our majority ownership of AmBev," he said.

Under the deal, Interbrew will pay EUR 3.2 billion for 100 % of AmBev holding company Braco and AmBev will get Interbrew assets in North America worth EUR 4.6 billion including debt. This includes Interbrew's 70 % interest in Labatt USA and its 30 % stake in Femsa Cerveza SA.

Femsa is alleging that the proposed merger violates its rights as a minority shareholder. Brock said he is "confident that there remains a negotiated settlement to be done". This could involve either "a redefinition of the relationship with Femsa" or a parting, he said without elaborating.


30 April, 2004