The $107 billion (with a b) merger of beer titans Anheuser-Busch InBev and SABMiller has cleared a major hurdle today, with the U.S. Justice Department signing off on the merger — under the condition that Miller divest itself of all its remaining U.S.-based businesses.
SAB Miller is currently a 58% owner of MillerCoors, which handles the Miller brands stateside. In Nov. 2015 — in anticipation of regulatory scrutiny — the company reached an agreement with partner Molson Coors (owner of the remaining 42% of MillerCoors) to sell its ownership stake for $12 billion.
SABMiller must also divest itself of the worldwide rights to Miller Beer brands, meaning SABMiller will no longer sell any Miller products once the merger is complete.
For its part, AB InBev must stop its questionable practice of providing anticompetitive incentives — like covering marketing costs for distributors who kept a strict limit on non-AB InBev products.
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5 comments:
Don't mess with my beer. Now you're going too far.
Now, not only AB but Miller too, will be owned by a multinational Belgian-Brazilian company.
So, yes 10:11AM, they sure as hell are rutting with your beer.
Mergers are a big crack in the free-enterprise system and why our Congress cannot see it is criminal in my mind.
Gotta love it...Miller will no longer produce or sell Miller.
Craft beers are so much better. We need more craft breweries in the market to drive the price of their product down. It certainly doesn't need to be Natty Light priced...but it would be nice to see $24 cases.
That's why I brew my own.
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