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 The sale of the brands and their related businesses in Italy, the
Netherlands and Britain would be conditional on AB InBev acquiring
SABMiller in a cash and share offer currently worth some 72 billion
pounds ($108 billion).
AB InBev said on Thursday it was also looking to sell Meantime
Brewing Company, the London-based craft brewer that SABMiller
announced it was buying only in May.
The Belgium-based brewer has already agreed to sell SABMiller's
majority-stake in U.S. venture MillerCoors to Denver-based venture
partner Molson Coors for $12 billion.
"Like the previously announced disposal of the Miller business to
Molson Coors, these steps reflect AB InBev’s pro-active approach to
addressing potential regulatory concerns," AB InBev, the world's
largest brewer, said in a statement.
Potential buyers for Grolsch and Peroni, which could each be worth
some $1 billion, are not obvious, with obstacles for major brewing
groups like Heineken and Carlsberg. That could leave private equity
groups as the most likely bidders.
Facing a $3 billion break-up clause, AB InBev has a powerful
incentive to facilitate the SABMiller deal. With Stella Artois and
Beck's, AB InBev already has European lagers that it is marketing
internationally.
"What they really want is Africa and bits of Latin America. If you
said they couldn't include some SABMiller brands in Europe, you'd
bet they'd take that," said Societe Generale beverage analyst Andrew
Holland.
With SABMiller, AB InBev is buying into countries such as Colombia
and Peru and crucially, Africa, while markets such as the United
States are weakening as drinkers shun mainstream lagers in favor of
craft brews and cocktails.
EU SCRUTINY
Beverage analysts have identified the new company's business in
China, where SABMiller has a stake in market leader CR Snow, as a
regulatory hurdle, but it is not clear whether EU regulators would
insist on divestments in Europe.
The European Commission, which rules on antitrust issues in the EU,
will carry out a full investigation because the combined market
share would exceed 15 percent in at least one country.
In Italy, the new group would have 28.3 percent of the market, in
the Netherlands 27.9 percent and in Britain 21.8 percent, according
to beer market specialists Plato Logic.
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However, Heineken would remain the leader in all three markets, with
shares of 29.4 percent in Italy, 38.6 percent in the Netherlands and
27.5 percent in Britain.
AB InBev's issue may be that, with Peroni, Grolsch and Meantime, it
would have too great a share of premium beers.
The Commission in the past has looked at specific segments of the
market, such as its 2009-2010 review of the planned cooperation of
British Airways, Iberia and American Airlines on transatlantic
routes.
Then it said that premium and economy classes could be considered as
two separate markets. However, in brewing, premium is a vaguer
concept.
Heineken would be excluded give its existing market share. Molson
Coors, with business in Britain and eastern Europe, might be
interested but could be too stretched in buying MillerCoors in the
United States.
Carlsberg is grappling with a struggling Russian business, although
it might be able to do a deal if it sold shares.
Irish cider maker C&C could similarly be stretched and reluctant to
expand until its U.S. business turns around.
That would leave private equity buyers, AB InBev having previously
sold assets in Korea to KKR and in eastern Europe to CVC [CVC.UL],
buying back the former in 2014.
(Editing by Mark Potter and Keith Weir)
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