WASHINGTON – This week the U.S. Department of Justice cleared the Anheuser-Busch InBev (ABI) acquisition of SABMiller PLC. The DOJ’s decision also enables Molson Coors to acquire a 58% stake in MillerCoors SABMiller and the brand portfolio Miller outside of the United States.
Mark Hunter, president and CEO of Molson Coors, stated, “This represents a critical step in our journey toward full control of MillerCoors to finalize the merger AB InBev-SABMiller. The acquisition will allow us to streamline decision-making and reduce the complexity of the dual property; it will allow us to become a more integrated and efficient brewer; and it will allow us to become a more effective competitor as sole owner, which promotes consumer choice in a brewing industry increasingly diverse and growing rapidly.”
The settlement will prevent any increase in concentration in the U.S. beer industry, according to the Justice Department. The settlement prohibits ABI from instituting or continuing practices and programs that limit the ability and incentives of independent beer distributors to sell and promote the beers of ABI’s rivals, including high-end craft and import beers. Moreover, the settlement precludes ABI from acquiring beer distributors or brewers, including non-HSR reportable craft brewer acquisitions, without allowing for department review of the acquisition’s likely competitive effects.
“The remedy we secured will help preserve and promote competition in the multibillion dollar U.S. beer industry,” said Deputy Assistant Attorney General Sonia Pfaffenroth of the Justice Department’s Antitrust Division. “The two largest U.S. brewers—ABI and MillerCoors—will now remain independent competitors after the deal. The settlement also preserves the ability of smaller brewers—including brewers of craft and import beers—to compete against ABI by protecting their access to important distribution networks. Independent distributors that sell ABI’s beer will have the freedom to sell and promote the variety of beers that many Americans drink.”