The New York Times reports that the US Department of Justice has cleared the way for the $106 billion takeover by Anheuser-Busch InBev of SABMiller, allowing for the combination of the world's two biggest brewers.
According to the story, there are caveats: The combined company cannot "buy a distributor if that would push more than 10 percent of its overall sales volume in the country through wholly owned distributors. Anheuser also agreed not to cut any ties with wholesalers as part of the transaction. And the company, which makes Bud Light, agreed not to make moves that would encourage distributors to favor Anheuser or SABMiller brands over competing ones."
The two parties already have agreed to sell their stake in the MillerCoors join venture to Molson Coors, and to sell off brands such as Grolsch, Peroni and China's most popular beer, Snow.
According to the story, there are caveats: The combined company cannot "buy a distributor if that would push more than 10 percent of its overall sales volume in the country through wholly owned distributors. Anheuser also agreed not to cut any ties with wholesalers as part of the transaction. And the company, which makes Bud Light, agreed not to make moves that would encourage distributors to favor Anheuser or SABMiller brands over competing ones."
The two parties already have agreed to sell their stake in the MillerCoors join venture to Molson Coors, and to sell off brands such as Grolsch, Peroni and China's most popular beer, Snow.
- KC's View:
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Obviously, I know nothing about antitrust law, because it is hard for me to imagine why the feds would let this deal go through, but block the Staples acquisition of Office Depot.
And I don't really understand the caveat about agreeing "not to make moves that would encourage distributors to favor Anheuser or SABMiller brands over competing ones." Isn't that the whole point of what every company does - build strategies and tactics that make other people prefer them to the other company?
