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Monday, January 20, 2014

AB InBev to regain grip on S.Korea brewer OB for $5.8 bln, (NYSE: BUD)

Anheuser-Busch InBev SA , the world's largest brewer, has agreed to purchase South Korea's Oriental Brewery Co Ltd (OB) for $5.8 billion including debt, regaining ownership of a key Asian asset at a time of strong industry growth across the region.The sale by KKR & Co and Affinity Equity Partners represents Asia's biggest ever private equity sale via M&A in dollar terms, rewarding them with returns of more than five times their investment. OB had total debt of $922 million at end of 2012, according to the company's latest available figures.With the deal, AB InBev gains not only a South Korean brewer that has rapidly grown to command 60 percent market share but also distribution channels for its own brands such as Budweiser and Stella Artois that have room to grow in an underdeveloped premium beer segment."OB will strengthen our position in the fast-growing Asia Pacific region and will become a significant contributor to our Asia Pacific zone," Carlos Brito, Chief Executive Officer of AB InBev said in a statement. AB InBev also said it hopes to export OB brands more widely.

Anheuser-Busch InBev SA, formerly Anheuser-Busch InBev SA/NV, is a brewing company. Shares of BUD fell by 1.91% or $-1.98/share to $101.47. In the past year, the shares have traded as low as $83.94 and as high as $106.83. On average, 1136470 shares of BUD exchange hands on a given day and today's volume is recorded at 2721091.