Dive Brief:
- Sens. Mike Lee (R-UT) and Amy Klobuchar (D-MN) of the Senate Judiciary Subcommittee on Antitrust are planning a hearing to discuss AB InBev's takeover of SABMiller, officially a signal that the deal is indeed headed for U.S. scrutiny.
- "We want to know what the impact is on American consumers, how it affects small craft brewers to be able to get product to market and how would [AB InBev] ensure this wouldn’t have a major impact on price or market entry," according to Klobuchar. She added the hearing would include testimony from from AB InBev and other beer company CEOs.
- The hearing isn't yet scheduled though will likely happen by the end of the year.
Dive Insight:
AB InBev still has until Oct. 28 to put in a formal bid for SABMiller or request an extension, though it announced a principle deal Oct. 13.
The regulatory scrutiny in the U.S. is no surprise: AB InBev holds 45% of the market and SABMiller another 25% through its Molson Coors Brewing Co. joint venture. A spokeswoman from AB InBev said it wants to solve regulatory concerns in the U.S. "promptly and proactively."
Klobuchar clarified that the subcommittee can't assume the possible divestitures will definitely happen, and is currently acting like AB InBev would indeed have 70% of the U.S. beer market per the acquisition.
Antitrust issues are likely in China and could the deal could see political pushback in South Africa on tax revenue and job security issues.