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AB InBev to sell Peroni and Grolsch for a seamless SABMiller takeover

Anheuser-Busch InBev plans to sell premium brands Peroni and Grolsch to comply with the regulatory issues on its $107 billion acquisition on SABMiller.

Chicago Sun-Times reported that the Budweiser maker agreed to acquire its main rival for 73.5 billion-pound. The merger of the two giant beverage firms will account for almost a third for the world's total beer market.

The company announced Thursday that it is looking for buyers for SABMiller's Peroni and Grolsch, along with their operations in Italy, the U.K., and in the Netherlands. It will also be selling the SAB's Meantime craft brewery located in Greenwich, London.

Bloomberg wrote that the assets would sell for $1 billion as estimated by analysts. It will clear possible antitrust problems from AB InBev's acquisition of the Castle lager maker.

Molson Coors Brewing Co. will buy for $12 billion SABMiller's 58 percent stake in MillerCoors. Meanwhile, the company must also look for a buyer for the 49 percent stake in China Resources Snow Breweries Co.

London Beregberg analyst Javier Gonzalez Lastra said selling Peroni and Grolsch will cut leverage and will not make the SABMiller takeover "less attractive. "They are attractive assets. They're very well positioned, internationally recognized brands," he said.

According to estimates by Susquehanna Financial Group analyst Pablo Zuanic, the sale of Peroni and Grolsch could raise up to $1.2 billion. Some of the potential buyers are Kirin Holdings co. of Japan and Carlsberg A/S.

According to the International Business Times, the takeover would generate about $64 billion annual revenue in beer sales worldwide. There were not much change in the shares of both companies in the Brussels and London stock exchange after news of the acquisition broke out. Ab InBev will pay 44 pounds, or about $66, a share for SABMiller.

If the deal will not get regulatory approval, Ab InBev could pay up to $3 billion termination fee. The two big beer firms had a principle agreement for a merger in October and recently completed negotiations November. It will give Ab InBev access to SABMiller's market in Africa and Latin America.


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