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After calling off the IPO, AB InBev sells its Australian business

Anheuser-Busch, the world’s largest brewer has decided to sell its business, based out of Australia after backing out of its IPO. This IPO, had it occurred, would have resulted in the largest IPO ever in 2019.

The company has decided to sell off its C&U Breweries wing to Japan’s beer company Asahi. The deal is currently valued at over $11.3 billion or 16 billion AUD. The deal was announced this Friday, which was actually supposed to be the listing day for AB InBev Asian business wing on HKSE. The IPO is estimated to have raised at least $9.8 billion easily, had it gone through.

These plans were backed out of, during last week as the company cited increasing concerns regarding broader conditions in the market. Announcing this Australian deal, the beer production company released a statement where it announced that it continued to believe another offering would take place in the near future. An IPO of the remaining business wings in Asia hasn’t been ruled out yet as the company stated that the next IPO would come at a better valuation.

Owner of Stella Artois, Budweiser, and Corona, this company has seen massive success in the past due to its increasing popularity in several markets. It is now considering plans to ensure the sale of more assets located in the Asian region, like its wing located in the South Korean market. However, the company decided to decline questions for comment regarding these plans during Friday’s meeting.

The company has a massive debt liability, which is currently valued at around $102.5 billion in 2018 and is currently seeking ways for reducing this huge load. It has stated that AB InBev’s new agreement with Asahi might help tackle this issue, with almost all resulting proceeds being used for paying off its debt. As per the deal’s conditions, which will be closed by Q1 2020, the company AB InBev has decided to grant Asahi all rights for commercializing AB InBev’s portfolio of international and global brands in the Australian market.

Maria Petersen
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EDITOR AND WRITER At Industry News Coverage

Maria Petersen, one who a true enthusiast of the space, universe, and the outer world, has pursued a degree in Astrophysics. And this has made her an apt choice to write about the world of Science. Beginning a career in writing as a freelancer and then, gradually with hard work and passion, earned the position of Editor And Writer in our organization. Also loves to be called Content Crafter, Maria is given the responsibility to write blogs and news articles related to the Science field, entailing new findings & discoveries, inventions & innovations, new satellite & spacecraft liftoffs, galaxies & outer space, and much more.

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