Carlos Brito said that the South African market had a key role to play after Anheuser-Busch's merger with SABMiller.
Anheuser-Busch InBev has agreed to invest ZAR 1 billion ($69 million) in protecting South African jobs for at least five years after its takeover of SABMiller, as part of concessions agreed with the country’s Ministry of Economic Development.
The brewer has signed up to supporting small-scale farmers in the country and safeguarding jobs – including ensuring that there are no involuntary job losses as a result of the transaction, and maintaining levels of permanent employment – in order to secure regulatory approval for the $106 billion acquisition.
As part of the commitment, Anheuser-Busch will also finance 800 new black emerging farmers and 20 new commercial farmers to produce barley, hops, maize and malt for the company, with the strategic intent to create additional jobs in the agricultural supply chain, the South African government said.
The agreement is expected to “expedite the merger proceedings” and will form part of the Competition Commission’s considerations when making a recommendation in regards to the deal to the country’s Competition Tribunal.
Anheuser-Busch CEO, Carlos Brito, added: “As we have stated from the outset, we are excited about the growth opportunities and the role South Africa will play in our combined business. Recognising South African Breweries’ important contributions to South Africa’s economy and society, our commitments seek to build on this deep heritage and we believe there is a huge amount that the two companies can achieve together to the benefit of all stakeholders.”
And Ebrahim Patel, the South African government’s minister of economic development, said: “The commitments made by the company are the most extensive merger-specific undertakings made to date in a large merger. In our view, they meet the requirements of the competition legislation,” Economic Development Minister Ebrahim Patel said.
The commitment will also support other enterprise development initiatives, including coaching and business incubation and the localisation of inputs into the production of beer, which range from agricultural inputs to packaging.
Anheuser-Busch has also undertaken to work closely with government to reduce alcohol abuse by introducing and promoting no-alcohol and low-in-alcohol products to the South African market to encourage consumers to make lower alcohol choices, including through brewing these products locally where possible.
The company will support broad-based empowerment and will maintain South African Breweries’ current Zenzele share scheme, which provides opportunities for black South Africans – including employees – to participate as shareholders, until the scheme expires in 2020. The company will table a proposal within two years of closure of the deal that will set out its long-term empowerment commitments beyond 2020.
The agreement also includes a pledge for Anheuser-Busch to support the participation of small craft-beer producers in local markets.
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