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Asahi to buy Pilsner Urquell from AB InBev | Asahi to buy Pilsner Urquell from AB InBev |
(about 3 hours later) | |
Japanese brewer Asahi has agreed to buy five Eastern European beer brands in a deal worth €7.3bn (£6.1bn). | Japanese brewer Asahi has agreed to buy five Eastern European beer brands in a deal worth €7.3bn (£6.1bn). |
Anheuser-Busch InBev had agreed to sell the brands, which include Pilsner Urquell, Tyskie and Kozel, to help get clearance from competition regulators for its $100bn takeover of SABMiller. | Anheuser-Busch InBev had agreed to sell the brands, which include Pilsner Urquell, Tyskie and Kozel, to help get clearance from competition regulators for its $100bn takeover of SABMiller. |
It would be Asahi's biggest acquisition to date and its latest in Europe, which is its second largest market. | It would be Asahi's biggest acquisition to date and its latest in Europe, which is its second largest market. |
Earlier this year, Asahi bought Peroni and Grolsch from SABMiller. | Earlier this year, Asahi bought Peroni and Grolsch from SABMiller. |
'Premium brands' | |
Many Japanese firms are on the lookout for opportunities to buy firms overseas, because domestic conditions - including deflation, weak consumer spending and a falling population - make Japan an increasingly hard place to make profits. | |
Asahi said it was trying to establish itself as a global player, mainly focusing on a "leading premium brand portfolio". | |
The deal will see Asahi buy businesses formerly owned by SABMiller in the Czech Republic, Poland, Hungary, Slovakia and Romania. | |
It will own the Polish brand Lech and Hungary's Dreher as well as the rights to sell certain other brands around the world. | |
Asahi said the deal had synergies with its existing European brands and would enhance its "cash generating power" . | Asahi said the deal had synergies with its existing European brands and would enhance its "cash generating power" . |
But shares in the brewer fell on the news, closing 4.6% lower in Tokyo. | But shares in the brewer fell on the news, closing 4.6% lower in Tokyo. |
The deal is subject to European Commission approval but is expected to be completed in the first half of 2017. | The deal is subject to European Commission approval but is expected to be completed in the first half of 2017. |