The merger that would consolidate the production of one-third of the world’s beer into one company just got one step closer to reality. AB InBev, the largest international beer producer, received approval for the deal from the South African government, who had previously complained that the acquisition of SABMiller might cost the country jobs. The deal comes with a no-layoff guarantee and $69 million.
According to Eater, InBev promised that it would contribute $69 million towards “support[ing] farmers, local manufacturing, jobs and the reduction of harmful alcohol use” in South Africa, in addition to starting new farms to produce hops and other beer-related crops.
The South Africa deal is pocket change for the company in light of the global $108-billion deal with SABMiller that’s on the table. And AB InBev still has a long way to go before its 30%-of-world-market-share dreams come true, since South Africa is just one of many country’s that has raised antitrust concerns around the merger.
We’ll see which country falls in line next, and how much AB InBev has to sweeten the deal to make it happen.