AB Inbev Reportedly Nearing Deal To Reacquire Oriental Brewery

(RTTNews) - Belgian brewer Anheuser-Busch InBev, known as AB InBev (BUD, AHBIF.PK), is nearing a deal to reacquire South Korean brewer Oriental Brewery from private equity owners KKR & Co. (KKR) and Affinity Equity Partners for around $4.5 billion, according to media reports.

People familiar with the matter said the discussions are in the advanced stages and an agreement is expected in the coming days.

The potential acquisition reportedly comes as AB InBev and other major brewers struggle to grow amid recent slowdowns in major markets in Europe, North America and South America.

The $4.5 billion price tag reflects a multiple of roughly 11 times Oriental Brewery's earnings before interest, taxes, depreciation and amortization.

AB InBev sold Oriental Brewery in 2009 to KKR for $1.8 billion to help pay down debt following its $52 billion acquisition of Anheuser-Busch in 2008. It retained the right to reacquire Oriental Brewery within five years at predetermined financial terms.