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South Africa: InBev, SABMiller should comply

Staff writer ▼ | October 16, 2015
The planned takeover of SABMiller by Anheuser-Busch InBev should comply with conditions imposed by South Africa on SABMiller when it relocated its head office to Britain in 1999, South Africa's National Treasury said.
Acquisition   National Treasury will watch beer producers closely
SABMiller, which on Tuesday agreed in principle to an offer worth more than $100 billion from its larger rival, traces its roots back to South Africa 120 years ago, when it began selling beer in the gold-prospecting fields around Johannesburg.

Before relocating its head office to London in 1999, South African exchange control authorities required SABMiller to prove its assets would not be affected by the move.

Other conditions include that all the South African operations and assets of the company will remain in South Africa, and that the company would match dividends paid to the foreign holding company with dividends paid to South African shareholders, in order to maintain balance-of-payments neutrality.

A senior treasury official said on Tuesday the department was watching the merger for signs of any tax erosion.