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Anheuser-Busch InBev To Sell Australian Unit CUB To Asahi Group For $11.3 Bln

Brewer Anheuser-Busch InBev SA (AHBIF.PK,BUD) announced Friday that it has agreed to divest its Australian subsidiary Carlton & United Breweries or CUB to Asahi Group Holdings, Ltd. for A$16 billion, equivalent to approximately $11.3 billion, in enterprise value.

As part of the deal, AB InBev will grant Asahi rights to commercialize the portfolio of AB InBev's global and international brands in Australia.

The transaction is expected to close by the first quarter of 2020. The company would use substantially all of the proceeds from the sale to pay down debt.

The company expects the divestiture of CUB would help it to accelerate its expansion into other fast-growing markets in the APAC region and globally.

AB InBev further said it continues to believe in the strategic rationale of a potential offering of a minority stake of Budweiser Brewing Co. APAC Limited, excluding Australia, provided that it can be completed at the right valuation.

Carlos Brito, Chief Executive Officer of AB InBev, said, "We continue to see great potential for our business in APAC and the region remains a growth engine within our company. With our unparalleled portfolio of brands, strong commercial plans and talented people, we are uniquely positioned to capture opportunities for growth across the APAC region."

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