Asahi to take EUR7.4bn loans to fund SABMiller's assets purchase
Japanese beer maker Asahi Group said it will take on EUR7.4bn in bank loans to finance its purchase of SABMiller's former Central & Eastern European beer assets.
Asahi said its board agreed to the loan, from Japan's Sumitomo Mitsui and Mizuho banks. The money is expected to be taken out in the first half of this year.
In October, Asahi had acquired Peroni, Grolsch and Meantime beer brands from SAB Miller for €2.5bn. SAB Miller was later merged into AB InBev in a £79bn deal.
Last December, Asahi agreed to acquire a group of eastern European beer brands, including Pilsner Urquell, from AB InBev for €7.3bn.
The loan facility is required for the acquisition of business in the Czech Republic, Slovak Republic, Poland, Hungary and Romania and other related assets that were owned by SABMiller.
Asahi will also get the intellectual property rights of the beer brands that include Pilsner Urquell, Kozel, Tyskie among others.
However, the deal excludes the US and Puerto Rico intellectual property rights associated with Pilsner Urquell, Tyskie and Lech.
Asahi said that the acquisition of the brands complement its Western European business besides consolidating its business platform and enabling it to grow sustainably across the continent.
Asahi Group is engaged in the manufacturing and sale of food and alcohol beverages.
Image: Asahi Gold Beer. Photo: courtesy of MASA (talk).