Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: ACCC clears AB InBev, SABMiller deal, (May 6, 2016)

By Greg Hammond, J.D.

The Australian Competition and Consumer Commission (ACCC) will not challenge Anheuser-Busch InBev’s acquisition of SABMiller plc, the agency announced yesterday.

AB InBev is the largest brewer in the world, selling brands such as Corona, Stella Artois, Beck’s, and Budweiser. SABMiller, also a multinational brewing and beverage company, owns brands like Victoria Bitter, Carlton, and Crown Lager.

“The ACCC found that the proposed acquisition would not significantly change the current market structure,” ACCC Chairman Rod Sims stated. “The two largest suppliers of beer in Australia are Lion and SABMiller, which owns Carlton & United Breweries (CUB). While AB InBev’s brands have been successful in Australia, particularly Corona, they have previously been distributed via either Lion or CUB. AB InBev has only a limited direct company presence in Australia and does not brew beer here.”

Although the ACCC was preliminarily concerned with Lion’s distribution agreements with AB InBev, under which the proposed acquisition may have increased the ability and incentive for coordination between Lion and AB InBev/SABMiller, AB InBev terminated those agreements. Consequently, the relevant beer brands will be distributed in Australia by AB InBev/SABMiller, alleviating the ACCC’s competition concerns.

“[W]e are pleased to be able to move forward with our planning for our combination with SABMiller in Australia,” an AB InBev spokeswoman told Wolters Kluwer. “We look forward to the opportunity to engage in the local beer industry and broaden our relationship with the Australian consumer once the combination has completed.”

Companies: SABMiller plc; Anheuser-Busch InBev

News: AcquisitionsMergers Antitrust