AB InBev, SABMiller deal wins US approval, adds craft beer protections

NEW YORK — Anheuser-Busch InBev and SABMiller received approval for their $107bn merger from US antitrust regulators on Wednesday after the companies agreed to unload beer assets and preserve competition from independent craft brewers.
The Department of Justice (DOJ) approval comes with a number of stipulations and is notable after the regulatory authority derailed several recent megamergers over antitrust concerns.
The Belgian brewer will make concessions beyond its publicly stated offer to sell its stake in MillerCoors, its US joint venture with London-based SAB, as part of the deal. AB InBev will also have to curb its use of incentive programmes to limit competition.
Reuters previously reported that the DOJ was investigating AB InBev’s practice of financially rewarding distributors for selling more of its own beer than its competitors’. Craft beer companies had vocally objected to the practice, which they argued hurt their ability to sell.
"Independent distributors that sell (AB InBev’s) beer will have the freedom to sell and promote the variety of beers that many Americans drink," Deputy Assistant Attorney-General Sonia Pfaffenroth of the DOJ’s Antitrust Division said.