Asahi to Buy Beer Brands from AB InBev for $7.8 billion

TOKYO: Asahi Group Holdings Ltd agreed to buy SABMiller Plc’s central and eastern European assets from Anheuser-Busch InBev NV for 7.3 billion euros ($7.8 billion), in a move that catapults Japan’s largest brewer to third place on the continent.

Asahi expects the acquisition — which spans five countries and includes beer brands such as Pilsner Urquell, Kozel and Tyskie — to close in the first half of 2017, the Tokyo-based brewer said in a statement on Tuesday. The deal would help Asahi position its overseas business as a growth engine to transform itself into a global powerhouse, it said.

The deal further strengthens Asahi’s foothold in Europe after the Japanese brewer agreed to pay 2.55 billion euros for AB InBev’s Peroni and Grolsch brands earlier this year. For AB InBev, the divestment brings it a step closer to meeting the antitrust commitments that allowed it to buy SABMiller for about $100 billion.

“We had estimated a value between $5 billion and $6 billion, so the price paid by Asahi looks pretty full and great for AB InBev,” Trevor Stirling of Sanford C. Bernstein said by phone. The analyst estimates Asahi will account for 9% of the beer sold in Europe, excluding Russia, after the deal.

Asahi shares fell 4.6% by the close of Tokyo trading Tuesday, the biggest drop since June. AB InBev rose as much as 1.5% in Brussels.

A completed sale would bring some much-needed cheer for AB InBev investors, who had seen the stock slide 15% this year through Monday. In October, the brewer missed profit estimates for the sixth straight quarter, illustrating why it needed to acquire SABMiller.