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November 27, 2020

Ab Inbev Sabmiller Cooperation Agreement

Filed under: Uncategorized — ירון @ 6:45 pm

(a) Summary of the agreement. On November 11, 2015, Anheuser-Busch Inbev announced a deal to buy SABMiller for approximately $108 billion. AB InBev reserved the right to determine the strategy for obtaining antitrust authorization and agreed to do its best. Both parties agreed to provide information and support that could reasonably be required to obtain structuring authorizations and remedial action. AB InBev agreed that approvals may be needed through “better efforts” to offer divestitures to regulators. AB InBev also accepted a $3 billion reverse break fee. The DOJ submitted a second application to continue the review of the merger. The contract expires if it is not concluded within 18 months of the announcement (May 11, 2017). LONDON – Anheuser-Busch InBev said Wednesday it has reached an agreement to buy its nearest rival, SABMiller, for nearly $106 billion, creating the world`s first “true brewery.” The Anheuser-Busch InBev agreement for SABMiller met after the companies agreed in principle on October 13. Since then, they have negotiated the details of the merger. b) cooperation. Starting with InBev, (a) defines the strategy to be implemented to meet the requirements and to obtain other authorisations, including: (i) sequentially and sequentially with regard to the discussion, offer or agreement of corrective measures with the relevant authorities; and (ii) the definition of corrective measures that have been discussed, proposed or agreed with the relevant authorities; b) contact and correspond with the relevant authorities regarding obtaining authorizations (including the filing and preparation of all necessary applications, requests and submissions); and (c) are responsible for paying all restoration costs.

SABMiller is a major bottler for Coca-Cola in Africa, while Anheuser-Busch InBev is a major bottler for PepsiCo in Latin America. Analysts have expressed concern about the requirement for companies to make a similar concession to regulators in China, where SABMiller owns 49% of a joint venture owned by Snow, China`s best-selling beer brand. The sale of SABMiller`s stake in MillerCoors could remove a major regulatory hurdle: many analysts had predicted that the U.S. Department of Justice would seek to sell or dissolve the joint venture.

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