Public hearing on the proposed acquisition of SABMiller by AB InBev

Pursuant to section 58(1) of the Competition Act (Cap 46:09), the Competition Authority invites members of the public to a hearing in relation to the proposed acquisition of the entire issued and to be issued  share capital in SABMiller by AB InBev.

The hearing will be held at the Competition Authority offices on 5^thApril, 2016, at Plot 28, Matsitama Road, Old BEDIA Building at 09:30 hrs.The hearing will be held with each of the parties to the transaction and other interested parties, pursuant to section 58(3)(a) of the Competition Act. The hearing is intended to allow the parties to the transaction to make oral representations to the Authority with respect to the transaction, as well as allow their competitors and the general public to express their views on the acquisition.

Furthermore, other interested parties not party to the proposed transaction will be afforded an opportunity to voluntarily submit to the Competition Authority any document, affidavit, statement or other relevant information in respect of the proposed acquisition. Though not mandatory, it would be preferable for those attending to submit copies of what they intend to present to the Competition Authority no later than 3^rd April, 2016.

The acquiring firm, AB InBev, is a public company incorporated under the Laws of the Kingdom of Belgium and is listed on Euronext Brussels Stock Exchange, Mexican Stock Exchange, Johannesburg Stock Exchange and the New York Stock Exchange. AB InBev is controlled by Stichting Anheuser-Busch InBev. AB InBev is active in the production, marketing and distribution of beer, non-alcoholic/near beer (i.e. low ABV) and soft drink products. AB InBev does not source raw materials from Botswana, does not operate a brewery in Botswana, or in Africa, and does not undertake its own distribution and sale of beer products in Botswana. Its beer products are imported and sold in Botswana through a third party distributor DGB (Pty) Ltd. These products are Corona Extra, Stella Artois, and Beck’s Blue. DGB is a South African company engaged in distribution as well as manufacturing and marketing of wine.

The target firm, SABMiller, is a public limited company incorporated under the Laws of England and Wales with a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. No person or firm controls SABMiller, either directly or indirectly. The top 5 shareholders in SABMiller are Altria Group Inco, BEVCO LLC, Public Investment Corporation Ltd, Kulczyk Investments SA and BlackRock Investment Management (UK) Ltd. SABMiller is a multinational brewing and beverage company, headquartered in the United Kingdom. Through its subsidiaries it is engaged in the manufacture, distribution and sale of various types of beverages, including brewing and hop farming activities, and offers beer, soft drinks and other alcoholic and non-alcoholic beverages. SABMiller has operations in 75 countries across Africa, Asia, Australia, Europe, and Latin America. SABMiller operates in Botswana through Kgalagadi Breweries (Proprietary) Limited (“Kgalagadi Breweries”). Kgalagadi Breweries produces and distributes beer and non-alcoholic beverages.

Post implementation of the proposed acquistition, AB InBev will own 100%  of the issued share capital of SABMiller.

Any questions on the above-mentioned hearing may be directed to:-

Director, Mergers and Monopolies, The Competition Authority, P/Bag 00101, Gaborone, Plot 28, Matsitama Road, Tel: 3934278 Fax: 3121013 Email: magdeline@orangemail.co.bw