AB InBev sells nearly half of its US can plants to a consortium formed around the investment company Apollo. The proceeds of the sale will be used to reduce debt.
3 billion dollars
The agreement with Apollo will bring some 3 billion US dollars (2.46 billion euros) to AB InBev, reports De Tijd. In return, the consortium will take over 49.9% of the beer giant’s American can factories, even if the latter will retain operational control over the sites. A long-term contract also guarantees the continued supply of cans.
The brewer will use the proceeds from the sale to reduce its vast outstanding debts. These are mainly a legacy of the (too expensive) acquisition of SABMiller in 2015. Halfway through this year, AB InBev still had 87.4 billion dollars (71.7 billion euros) in debt.
However, the brewer surprised with very good results in the third quarter. Turnover even increased – despite the pandemic – by 4%. This enabled AB InBev to reduce its debt burden by 11.4 billion dollars (9.34 billion euros) over this period. The group also decided to abolish interim dividend, representing an additional “saving” of around 1.6 million euros.
