AB InBev is preparing to defend its proposed takeover of SABMiller to the U.S. Congress.
According to a report from Invezz, in an attempt to ease lawmakers’ concerns about the deal, Carlos Brito, CEO of AB InBev, is expected to testify in defense of the transaction. If the merger is completed it will result in the creation of a company that would control approximately 30% of the global beer market. These two companies are currently ranked as the world’s No. 1 and No. 2 brewers, and combined they account for nearly 50% of worldwide beer profits.
This dominance that the combined company would possess has caused regulators around the world to feel concerned with the possible impact the deal would have on competition in the beer market. AB InBev and SABMiller have large interests in the U.S., causing the U.S. to be one of the merger’s greatest challenges.
In order to address the concerns of U.S. regulators, AB InBev has announced that it will sell SABMiller’s 58% share in MillerCoors to joint venture partner Molson Coors for $12 billion. It is hoped that this move will help to gain approval for the deal from the U.S. Department of Justice.
However, despite the company’s commitment to the sale of its MillerCoors shares, the merger will need to be examined by a subcommittee of the Senate Judiciary Committee in order to determine the potential effects on competitors and consumers.