Deal Street

December 16, 2016

$7.8-Billion Deal: Asahi To Buy SABMiller Plc's Assets


Recently, it has been reported that Asahi Group Holdings (a global beer, spirits, soft drinks and food company) agreed to buy SABMiller Plc’s (a multinational brewing and beverage company) eastern European assets including Pilsner Urquell (a Czech lager brewed in Plzeň, Czech Republic by Pilsner Urquell Brewery) from Anheuser-Busch InBev NV (a multinational beverage and brewing company) for $7.8 billion, as Budweiser maker ties up loose ends after combining the world’s two biggest brewers. The acquisition is expected to close in the first half of 2017.

The deal further strengthens Asahi’s foothold in Europe after Japan’s largest brewer agreed to pay $2.7 billion for AB InBev’s Peroni and Grolsch brands. For AB InBev, the divestment brings it a step closer to meeting the antitrust commitments that allowed it to buy SABMiller for about $100 billion.

Sanford C. Bernstein analyst Trevor Stirling stated that “We had estimated a value between $5 billion and $6 billion, so the price paid by Asahi looks pretty full and great for AB InBev.” He estimates that the market share by beer volume that Asahi will now have in Europe, excluding Russia, is about 9%.

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