(MENAFN- AFP) South Africa's Competition Tribunal approved Thursday the blockbuster buyout of SABMiller by the world's top brewer AB InBev, subject to conditions, paving the way towards completion of the huge deal.
Conditions include the sale of SABMiller's stake in Distell Group, as South Africa's regulator moved to protect competition and prevent job losses.
AB InBev's acquisition of the London-based SABMiller, which was valued at $121-billion when it was announced in November and in line to be the third largest in history if it clears all regulatory hurdles, is now worth considerably less given the plunge in the value of the pound thanks to Britain's vote to leave the European Union.
Current exchange rates put the value of the acquisition around $106.5 billion for Belgium-based AB InBev.
"The Competition Tribunal approved the merger between beer giants Anheuser-Busch InBev (AB InBev) and SABMiller plc subject to wide ranging conditions designed to address both public interest and competition concerns," the tribunal said in a statement.
AB InBev, brewer of Stella Artois and Budweiser, secured approval from the EU and Australia in May.
"We are delighted by the Competition Tribunal's decision to approve our proposed combination with SABMiller in South Africa, a market that would play a critical role in the combined company," the company said in a statement.
"We recognise South African Breweries important contribution to the country's economy and society and look forward to building on this through the commitments we have made on jobs."
In April, AB InBev said it would sell SABMiller's stake in leading Chinese beermaker Snow Breweries, in a move that appeared aimed at persuading Chinese regulators to sign off on the giant merger deal.
AB InBev sees the buyout of SABMiller as a key way to counterweight falling beer demand in big markets by building its presence in Africa and other regions where sales are rising.
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