AB InBev plans to sell Peroni and Grolsch

Gaëlle Laforest

30 November 2015

Following the recent agreement on the terms of AB InBev's acquisition of SABMiller, the former is planning to sell SABMiller's Peroni and Grolsch brands.

The news, reported by The Sunday Times, says AB InBev – which owns Budweiser, Beck’s and Stella Artois – plans to sell the two beers amidst concerns over competition in the European beer market.

However, no formal announcement was made by either party; and both AB InBev and SABMiller declined to comment.

Professor John Colley of Warwick Business School said: ‘Likely bidders for Peroni and Grolsch include Heineken and Molson Coors. A consequence is that we are likely to see further concentration of brand ownership which in turn will mean less choice and possibly higher prices for the consumer.

'As competition authorities start to become interested when combined market shares exceed 25% there may be many more disposals to follow. This will occur in a number of European markets and market share in China will exceed 40%. Competition authorities will be carefully examining the deal there.

'Each disposal drives value out of the original deal as sales are normally at a lower price than the original SABMiller takeover price. Research tells us that in over half of all takeovers shareholder value is destroyed and the vast majority fail to deliver expected benefits. Further disposals will make this trend more likely for AB InBev's shareholders.'

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