AB InBev Accepts Asahi Offer For SABMiller’s European Brands

The deal – conditional on the AB InBev/SAB takeover going ahead – will mean the Japanese company also taking ownership of London’s Meantime brewery alongside SAB’s Italian, Dutch and British operations which make and distribute the brands.

Asahi Group Holdings Ltd. had made a binding offer in February of 2.55 billion euros (currently $2.88 billion) for the brands.

In February 2016 it was announced that Asahi bid nearly £2bn for the three brands and their related businesses in Italy, the Netherlands, the United Kingdom and internationally.

The agreement with Asahi is just latest in a number of disposals AB Inbev has negotiated as the planned merger with SABMiller triggers a bout of consolidation in the global beer sector. The deal will be the group’s biggest-ever worldwide acquisition.

SAB only bought Meantime previous year, as part of an attempt to reap the benefits of the growing craft beer market in the UK.

The sale would smooth the way for the Budweiser owner’s 72 billion-pound takeover of SABMiller by helping to clear antitrust hurdles in Europe.

Asahi is Japan’s biggest brewer with a 38% market share but is seeking growth outside Japan where a shrinking population and the increasing popularity of wine have weighed on beer sales over the past two decades.

The Tuesday deal marks Asahi’s first major European acquisition, and one that could pose challenges for a company unfamiliar with the market, said Credit Suisse analyst Masashi Mori. “They have good experience in cost control in past acquisitions, but whether they can manage it from the European brand perspective, I’m still dubious”. The shares have fallen 6.4 per cent so far this year, compared with the 12 per cent drop in the benchmark Topix index.