Anheuser-Busch, InBev Merger Moves Forward

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Anheuser-Busch, InBev Merger Moves Forward

11/17/2008
BRUSSELS, Belgium -- The U.S. Department of Justice (DOJ) and InBev, the leading global brewer, reached an agreement last week to complete the merger between the beer company and St. Louis, Mo.-based Anheuser-Busch Inc., the largest U.S. beer maker.

Under the terms of the agreement to complete the merger, filed Friday in U.S. District Court for the District of Columbia, InBev will:

-- Grant a perpetual exclusive license to market, distribute and sell beer from its partially owned, indirect subsidiary Labatt Brewing Co. Ltd.—primarily Labatt Blue and Labatt Blue Light—for consumption in the U.S. to an independent third party. That third party will also have the right to brew Labatt-branded beer in the U.S. or Canada solely for U.S. consumption, and can use the relevant trademarks and intellectual property to do the aforementioned actions.

-- Sell to the licensee assets or stock of InBev USA LLC d/b/a/ Labatt USA, which is an InBev subsidiary headquartered in Buffalo, N.Y., and handles the importing, marketing and sale of Labatt-branded beer to wholesalers in the U.S.

-- Permit Labatt Brewing Co. Ltd. to brew and supply Labatt-branded beer for the licensee for an interim period of no more than three years.

The above actions will be implemented following completion of InBev's acquisition of Anheuser-Busch, according to InBev. The earnings impact from these actions is not material to InBev's overall business, the company stated.

While the merger is subject to regulatory clearances and customary closing conditions, and a closing date has not been announced, InBev expects to complete the transaction as soon as practicable, it said.