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InBev told to sell Labatt with Anheuser-Busch merger

The U.S. Department of Justice on Friday approved InBev’s $52 billion buyout of Anheuser-Busch Cos. Inc. but requires the Belgian brewer to first sell its interest in Labatt Brewing in the U.S.

The terms of a consent final judgment filed today in U.S. District Court for the District of Columbia require Labatt Brewing Co. Ltd., a partially owned, indirect subsidiary of InBev based in Toronto, Quebec, to grant a perpetual and exclusive license to brew, market, distribute and sell the Labatt beer brands in the United States to an independent third party.

Labatt Brewing in Canada will be allowed to brew and supply the Labatt brands to the U.S. licensee for an interim period of three years.

The existing operations of Labatt USA, an InBev subsidiary based in Buffalo, N.Y., that currently support the brand in the market will be sold to the licensee.

Anheuser-Busch said in a release that the divestiture of the Labatt business in the U.S. will take place after the merger deal closes. Anheuser-Busch is the top domestic competitor to MillerCoors LLC, the recently merged Miller Brewing of Milwaukee and Coors Brewing of Colorado.

InBev reiterated that it expects to complete its purchase of Anheuser-Busch “as soon as practicable,” having previously said it plans to complete the purchase by the end of the year. Depending on the timing of final regulatory approvals, the sale could close as early as the end of this month.

Anheuser-Busch shareholders approved the company’s sale to InBev for $70 a share at a special meeting Wednesday.

InBev shareholders previously voted in favor of the deal Sept. 29.

St. Louis-based Anheuser-Busch Cos. Inc. (NYSE: BUD), through its Anheuser-Busch Inc. subsidiary, holds a 48.5 percent share of U.S. beer sales. It also owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer, and a 27 percent share in China brewer Tsingtao.

written on 16.11.2008 um 07:41.

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