South African trade union groups urge competition authorities to block AB InBev takeover of SABMiller
South Africa’s Food and Allied Workers Union (FAWU) and the Congress of South African Trade Unions (Cosatu) have both indicated their opposition to Anheuser-Busch InBev’s [NYSE:BUD] GBP 68bn (EUR 92.44bn) takeover of SABMiller [LON:SAB], The Daily Mail reported.
The FAWU said the South African government, pension funds and regulators should oppose the takeover, according to the report. The unions are worried that the proposed deal will lead to job losses, the article said, adding that the Belgian brewer AB InBev has previously expanded through acquisitions and repaying debt via cost cuts.
The government could possibly block the takeover if there appear to be negative implications for employment or tax receipts, the item said. However, the report added that it is more likely that the deal would be delayed while the government tries to secure assurances.
SABMiller, an FTSE-100 brewing company that traces its history back 120 Years in South Africa, has 8800 employees in the country and paid GBP 780m in local taxes, the item said.
Daily Mail