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AB InBev Coughs Up $70 Million to Get One Step Closer to Mega-Merger

It's promised not to cut any jobs in South Africa

AP

Merging two giant multinational corporations is no easy feat. Approval has to be sought from all sorts of regulators and governing bodies, and many of them want something in return. Case in point: According to MarketWatch, AB InBev, the world's largest beer manufacturer, just promised to cough up a chunk of change to ensure the South African government will greenlight its proposed acquisition of rival beverage company SABMiller.

The nation's antitrust regulators expressed concern over how said merger could affect employment in South Africa, so AB InBev has promised "no employees in South Africa would lose their jobs as a result of the merger." The company has also said it will put $69 million toward "support[ing] farmers, local manufacturing, jobs and the reduction of harmful alcohol use," including funding new commercial farms who will produce hops and barley for beer production.

Of course, South Africa is just one of a number of countries where AB InBev has to get the A-OK before it can go ahead with its merger. But with a $108 billion deal in the works that would form a conglomerate controlling 30 percent of the global beer market, the beverage goliath knows it's got to spend money to make money — not to mention face lawsuits from concerned beer drinkers. Other steps taken to help ensure the merger goes through includes SABMiller selling labels Peroni and Grolsch to ease antitrust scrutiny in Europe.

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