Commission expected to approve beer mega-merger

Companies will account for almost one in three of world’s beers.

The European Commission is expected to approve the €92 billion merger between beer giants AB InBev and SAB Miller early this week after the parties promised to sell-off a host of beer brands, according to people close to the process.

The takeover will create a global beer giant, bolting SAB Miller’s leading presence in fast-growing African and Asian markets onto AB InBev’s established might in the U.S. and Europe.

The companies now account for almost one in three beers sold in the world. The merger, which was announced in November but has been years in the making, would be one of the most valuable in M&A history.

To allay competition concerns from Brussels, AB InBev agreed early on to off-load SAB Miller’s Peroni, Grolsch and Meantime brands to Japan’s Asahi in a deal worth €2.6 billion.

But fearing that would not be enough to ensure the deal’s smooth passage through Europe, the world’s largest beer company last month offered to divest all of SAB Miller’s businesses in central and eastern Europe, including the popular Czech beer, Pilsner Urquell.

Margrethe Vestager, the European commissioner for competition, has until Tuesday to either approve the merger or open an in-depth inquiry, following an initial probe that has lasted almost two months.

The Commission and AB InBev declined to comment. SAB Miller could not be reached for immediate comment.

Click Here: West Coast Eagles Guernsey