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Global brewing powerhouse AB InBev has agreed to sell its Australian subsidiary Carlton & United Breweries to Tokyo-headquartered Asahi…It’s a multi-billion dollar deal that has analysts talking…
Here’s what we know…
Anheuser- Busch In Bev has been in the news a lot lately, what with their on-again, off-again China IPO and now word that the world’s biggest brewer is selling its Australian business just days after calling off what CNN reports would have “the biggest initial public offering of 2019.”
As part of the 16 billion transaction (about $11.3 billion US) Asahi now has the right to sell AB InBev’s portfolio of brands within Australia according to the Drinks Business.
AB InBev stated that the sale will help to “accelerate its expansion” into other markets within the Asia-Pacific region as well as globally and help the brewing giant pay off debt which amounted to almost $102.5 billion in 2018.
The deal, which is subject to closing conditions and regulatory approval, is expected to be completed by the first quarter of 2020.
In his announcement Carlos Brito, Chief Executive Officer of AB InBev stressed the company’s continuing commitment to the Asia Pacific (APAC) region…
“We continue to see great potential for our business in APAC and the region remains a growth engine within our company. With our unparalleled portfolio of brands, strong commercial plans and talented people, we are uniquely positioned to capture opportunities for growth across the APAC region.”
And in that same statement Brito hinted that that on-again, off-again Asian IPO might soon be on-again…
“AB InBev continues to believe in the strategic rationale of a potential offering of a minority stake of Budweiser Brewing Company APAC Limited, excluding Australia, provided that it can be completed at the right valuation.”
Asahi’s acquisition of AB InBev’s Australian holdings follows its blockbuster purchase of UK brewer and pub operator Fuller’s earlier this year, a £250 million, deal which included flagship brand London Pride and the historic Griffin Brewery in London.
