CTC approves SABMiller acquisition

Source: CTC approves SABMiller acquisition | The Herald July 4, 2016

Conrad Mwanawashe : Business Reporter

THE Competition and Tariff Commission has approved the acquisition of Delta’s parent company, SABMiller Plc by AB inBev Limited but said the transaction should not result in job losses or discontinuation of local production of some of the brewer’s lines. The transaction sees AB InBev acquiring 100 percent of the issued share capital of SABMiller Plc.In a letter to Delta and AB inBev lawyer, Addington Chinake of Kantor and Immerman dated July 1, CTC acting director Ms Ellen Ruparanganda, while approving the transaction, set a number of conditions which the new owners should adhere to.

“I wish to advise that the examination of the above captioned transaction has been finalised and the Commission approved the transaction on the following conditions. Approval of the proposed transaction is subject to certain conditions concerning the business operations of Delta,” said Ms Ruparanganda.

Some of the conditions include maintaining the existing barley and sorghum contract farming schemes of Delta, to ensure the supply of malt by the group to other uses at reasonable, market-related terms, provided that Delta is not obliged to produce malt in excess of its own requirements, to ensure no involuntary retrenchments are carried out by Delta as a result of the proposed transaction between AB InBev and SABMiller and that top management of Delta comprises mainly local citizens.

The CTC also said Delta should maintain its local brands (Zambezi Lager, Bohlingers Lager, Castle Lager and Golden Pilsener) and develop them into export brands to the extent that this would be commercially feasible, for Delta to continue the practice of maximising local production of semi-and/or finished products, not to as a direct result of the proposed transaction, discontinue the local production of the Eagle Lager, Lion lager and Carling Black Label brands, which are currently produced under licence from SABMiller Plc.

According Ms Ruparanganda, Ab InBev undertakes to use its best endeavours as a shareholder in Delta to seek fulfilment of and compliance by Delta of the Conditions by exercising its voting rights and other operational arrangements in a manner which is consistent with objectives of the conditions; to respect the commercial imperatives applicable to Delta as determined by its board and management in carrying out A (the first conditions).

“Where viable, for Delta to seek to introduce new beer brands that can use locally produced raw materials to produce products for both the domestic and export markets; to work closely with Government agencies to help reduce the harmful use of alcohol and to the extent that it is commercially feasible and viable, develop Delta capabilities in order to increase the level of exports,” the CTC said.

Delta Corporation Limited an integrated beverage company with a diverse portfolio of local and international brands in lager beer, traditional beer, Coca-Cola franchised sparkling and alternative non-alcoholic beverages. It has investments in associate companies whose activities are in cordials and juice drinks, wines and spirits.


  • comment-avatar
    Simon M 6 years ago

    How is SAB-Miller a parent company of Delta Beverages when they don’t hold majority shareholding in Delta Corp, the parent company of Delta Beverages? Last I checked, Delta were an Associate of SAB-Miller, and not subsidiary. Check your facts and make factual reports not this bar talk type reporting above.