As per few anonymous sources, in order to make an acquisition of its biggest rival a less of complicated process, Anheuser-Busch InBev NV puts in efforts to sell the two of SABMiller PLC’s beer brands – the ones sold globally. However an exact amount for the deal has not been set yet.
The anonymous informative sources have also revealed that MillerCoors LLC however will claim over Peroni and Grolsch brands in U.S. With reference to selling SABMiller, AB InBev has given consent to sell off its 58% stake in the MillerCoors joint venture in association with Molson Coors Brewing Co.
Initially in November, AB InBev had signed an agreement to acquire SABMiller worth US$ 108 billion – a deal that could create an infusing behemoth over-ruling approximately 30% of world’s beer market.
On a similar notice, analyst Trevor Stirling of Bernstein laid forward his observation in Western Europe saying that AB InBev and SABMiller were overlapping, potential wise, in Italy and Netherlands where both of them altogether have combined shares of 30% and 27% respectively. Also, on reviewing U.K and Hungary, the companies have had combined shares of more than 20%. An important aspect that must not be over seen is that European regulators informally use 30% market share as a benchmark.
Sunday Times of U.K was the first to publish a content predicting a sale of Peroni and Grolsch – two of SABMiller’s four brands.
Moreover, Susquehanna Financial Group LLP analysts forecasted AB InBev to put forwards potential regulatory concerns by selling its local brands. However, the selling of those global brands could definitely lead the company to highlight those concerns with the passage of time where it might raise additional money to reduce US$ 75 billion in debt of what it is receiving after taking over SABMiller. As per analyst Pablo Zuanic:
“Peroni and Grolsch aren’t strategic in the bigger scheme of things. If that’s what it’s going to take to appease regulators in European countries, so be it.”
Apart from this, the planned sale also underscores the Belgian brewer’s confidence in its existing portfolio of global brands: Budweiser, Stella Artois and Corona. Those brands have far more volume than Peroni and Grolsch.
