14th Apr 2016 16:26
LONDON (Alliance News) - Anheuser-Busch InBev SA late Thursday said it agreed on its approach on public interest commitments in South Africa as it progresses its proposed takeover of London-listed SABMiller PLC.
The merger of AB InBev and SABMiller, which will see AB InBev pay GBP71.00 billion for the London-listed firm, will create by far the biggest beer business in the world with a market capitalisation of around USD280.0 billion. The pair are currently the world's first and second largest brewers, respectively.
On Thursday, AB InBev said it has struck a deal with the government of South Africa concerning employment, localisation of production and inputs used in the production of beer and cider, empowerment in the company, long-term commitments to South Africa and participation of small beer brewers in the local market.
"In a groundbreaking commitment, AB InBev has undertaken to ensure that at no point in the future will there be involuntary job losses in South Africa as a result of the transaction. In addition, the company has committed to maintain its total permanent employment levels in South Africa as at the date of closing, for a period of five years," said AB InBev.
AB InBev also said it plans to invest ZAR1.00 billion to support small-holder farmers and to generally promote local manufacturing, whilst also reducing the harm caused by alcohol use and investing in green and water-saving technology.
As part of that investment, AB InBev will finance 800 new emerging farmers and 20 new commercial farmers to produce barley, hops, maize and malt for the company, with the strategic intent to create additional jobs in the agricultural supply chain.
SABMiller shares closed down 0.2% to 4,218.02 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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