Australia Approves Proposed Acquisition Of SABMiller By AB InBev

(RTTNews) - The Australian Competition and Consumer Commission said that it will not oppose the proposed acquisition of SABMiller plc (SBMRY.PK, SAB.L) by Belgian brewer Anheuser-Busch InBev NV, or AB InBev (BUD, AHBIF.PK).

"The ACCC has concluded that the proposed acquisition is not likely to substantially lessen competition in the Australian beer market," ACCC Chairman Rod Sims said.

The ACCC said it found that the proposed acquisition would not significantly change the current market structure. The two largest suppliers of beer in Australia are Lion and SABMiller, which owns Carlton & United Breweries or CUB. While AB InBev's brands have been successful in Australia, particularly Corona, they have previously been distributed via either Lion or CUB. AB InBev has only a limited direct company presence in Australia and does not brew beer here.

"The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers," Sims said.

The ACCC noted that AB InBev has served notices to terminate agreements with Lion for the distribution of Corona and other AB InBev brands in Australia.

After the termination of these distribution agreements, the relevant beer brands will in future be distributed in Australia by AB InBev/SABMiller.

"The termination of the distribution arrangements therefore resolved the ACCC's competition concerns," Sims said.