The Australian Competition and Consumer Commission (ACCC) has approved the £71bn merger of Anheuser Busch InBev and SABMiller, after concluding that the deal would not affect the domestic market.
The regulator's decision came after AB InBev served notices to end the agreements with Lion for distribution of Corona beer and other AB InBev brands in Australia.
The ACCC was concerned about the continuation of distribution agreements between the two companies, as the proposed acquisition could have strengthened Lion and AB InBev/SABMiller partnership.
ACCC Chairman Rod Sims said: "The ACCC has concluded that the proposed acquisition is not likely to substantially lessen competition in the Australian beer market.
"The ACCC found that the proposed acquisition would not significantly change the current market structure. The two largest suppliers of beer in Australia are Lion and SABMiller, which owns Carlton & United Breweries (CUB).
"While AB InBev's brands have been successful in Australia, particularly Corona, they have previously been distributed via either Lion or CUB. AB InBev has only a limited direct company presence in Australia and does not brew beer here.
"The ACCC considers that the proposed acquisition is unlikely to result in higher beer prices for consumers."
Following the termination of the distribution agreements, the concerned beer brands will be distributed by AB InBev/SABMiller's combined entity in Australia.
Sims said:"The termination of the distribution arrangements therefore resolved the ACCC's competition concerns."
By getting a clearance from ACCC, AB InBev has overcome a major hurdle in buying SABMiller and inches closer to complete the purchase by the end of 2016. The deal is yet to secure antitrust clearance in Europe.
The European Commission is expected to give its verdict on the deal on 24 May.
Image: AB InBev and SABMiller inch closer to formalise their proposed merger. Photo: Courtesy of SABMiller.
