Distell gains in megabrewer merger
Several of the conditions imposed on the merger between SABMiller and Anheuser-Busch (AB) InBev are likely to strengthen the competitive position of Distell, according to the Competition Tribunal’s analysis of the reasons for granting conditional approval for the megabrew deal.
A Business Day report says in his reasons for the decision conditionally to allow the deal, tribunal chairperson Norman Manoim details how SABMiller will be forced to sell its 27% stake in Distell, how the merged entity will have to allocate space in its fridges for Distell’s cider, and how guarantees have been put in place to secure critical inputs for Distell and other competitors.
The tribunal released the reasons for the conditional approval on Thursday. Most of the conditions were the result of negotiations between the merging parties and Distell. Manoim said SABMiller’s disposal could result in renewed competition in the liquor sector, particularly in the fast-growing cider segment.
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