SOUTH KOREA: AB InBev completes Oriental Brewery deal
Under the terms of the agreement, AB InBev will continue its relationship with OB by granting OB exclusive licenses to distribute certain brands in South Korea including Budweiser, Bud Ice and Hoegaarden. AB InBev will also have an ongoing interest in OB through an agreed earnout.
In addition, AB InBev has the right but not the obligation to reacquire OB after five years at predetermined financial terms.
A statement said: "The divestiture of OB is part of AB InBev's ongoing de-leveraging programme and generates proceeds that will be used to repay debt incurred as a result of the combination of InBev and Anheuser-Busch. The impact on recurring results are immaterial and AB InBev expects to record a non-recurring capital gain of US$440m in the third quarter of 2009."
JP Morgan, Deutsche Bank and Lazard acted as financial advisors to AB InBev. Kim & Chang and Sullivan & Cromwell LLP acted as legal counsel.
Trade unions in Belgium claimed victory last night as they agreed to end worker blockades of Anheuser-Busch InBev breweries in return for talks with the group on alternatives to its proposed job cuts ...
- Focus - Edrington's FY Performance by Brand
- Pernod relies on Indian whiskey to crack Africa
- Hail Marie Brizard: But, For How Long?
- Analysis - Storm clouds lift over Diageo Towers
- Where Beer is Brewed Can Leave a Bad Taste
- Comment - Diageo CFO to North America? Do the Math
- Diageo CFO Mahlan to head up N America
- Diageo sells "non-core" Gleneagles
- Former Bacardi exec takes De Kuyper CEO role
- Diageo lining up Gleneagles sale - report
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- The IWSR Company Profile 2014 – Remy Cointreau
- Global Tequila insights - market forecasts, product innovation and consumer trends research