SABMiller takeover could be blocked by South Africa's treasury and unions - CNBC Africa

SABMiller takeover could be blocked by South Africa's treasury and unions

Southern Africa

by Reuters 0

SABMiller takeover by ABInBev could face a few hurdles. Photo: Flickr

South Africa's National Treasury could "in the extreme" try and block the $106 billion takeover of SABMiller by the world's largest brewer, Anheuser-Busch InBev, a senior treasury official said on Tuesday.

"We subject those applications to subjective criteria – the likely impact on capital account, the impact on the tax base and the possible complications," the treasury's Director General Lungisa Fuzile told Reuters.

SABMiller, which traces its roots to the dusty gold-prospecting fields around Johannesburg, where it began selling beer in 1895, contributed around 16 billion rand ($1.2 billion)to South African tax revenue in 2014/15 fiscal year.

The deal to create a brewer making almost a third of the world's beer would rank in the top five mergers in corporate history and be the largest takeover of a UK company.

SABMiller has a secondary listing in Johannesburg and employs more than 6,400 people in South Africa.

SOUTH AFRICAN UNION FAWU TO OPPOSE TAKEOVER

South Africa's Food and Allied Workers Union (FAWU) said on Tuesday it would oppose the $106 billion takeover of SABMiller by the world's largest brewer, Anheuser-Busch InBev over concerns jobs would be lost.

"We as FAWU, and as part of the International Union of Food and Allied Workers, are certain that we will oppose this transaction using all available means and avenues," FAWU's general secretary, Katishi Masemola, said in a statement.

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