El Salvador: Conditions Placed on Beer Market Merger

The Superintendency of Competition has ruled that the merger between AB InBev and SABMiller be conditional on a divestment plan consisting of the sale of the brands Suprema and Regia Extra.

Thursday, January 12, 2017

From a statement issued by the Superintendency of Competition (SC):

The Board of Directors of the Superintendency of Competition (CDSC) has conditioned the application for economic concentration between Anheuser-Busch InBev SA / NV (AB InBev) -purchaser- and SABMiller plc (SABMiller) -purchased-. The main conditions imposed were: (1) submit a divestment plan for approval by the CDSC; (2) formalize relationships with suppliers and refrain from anti - competitive practices, and (3) maintain labor guarantees for their employees. The Superintendency of Competition (SC) approved on December 7, 2016, the divestment proposal submitted by AB InBev consisting of the sale of the brands Suprema in three varieties, and Regia Extra.

The companies agreed in November 2015 to the worldwide acquisition on the part of AB InBev of the entire share capital issued and to be issued by SABMiller. The application for authorization in El Salvador was presented to the Superintendent of Competition on February 5 2016 and declared admissible on June 1, once the applicant complied with all of the requirements of the Competition Act and its Regulations.

More on this topic

Beer Market Purchase Approved

June 2018

The Superintendence of Competition in El Salvador has given approval for Cervecería Salvadoreña to buy the brands Regia and Suprema and their related assets.

From a statement issued by the Superintendency of Competition (SC):

June 19, 2018. Following the conditions imposed by the Superintendence of Competition (SC) for the authorization of the purchase of SABMiller plc (SABMiller) by Anheuser-Busch InBev (AB InBev) in El Salvador, by resolution of June 13, the Council Director of the Superintendence of Competition (CDSC) granted approval for Cervecería Salvadoreña, S.A. de C.V., to buy the brands Regia and Suprema and their related assets. This sale constitutes the main condition imposed by the SC. Through this action, the SC prevents the consolidation of a quasi-monopoly of beers in the country.  

AB InBev and La Constancia Must Improve Sales Proposal

April 2018

In El Salvador, the Superintendence of Competition has asked AB InBev, owner of La Constancia, to improve the terms of the purchase proposal of the SABMiller company.

In January last year, the Superintendence of Competition announced that it had conditioned the economic merger between AB InBev and SABMiller on a disinvestment plan consisting of the sale of the brands Suprema and Regia Extra.

Investment in Beer Production Plant

June 2017

Cervecería Hondureña has announced that it will be investing $25 million in the expansion of its beer production plant in San Pedro Sula.

The company, a member of the business conglomerate AB Inbev, explained that the expansion works will be completed within 10 months, once the process to obtain the necessary permits has been completed. 

El Salvador: Merger in Beverage Market

July 2016

The Superintendency of Competition is analyzing a merger application submitted by Anheuser-Busch InBev SA / NV, to acquire SABMiller.

From a statement issued by the Superintendency of Competition in El Salvador:

The Superintendency of Competition is analyzing a request for economic concentration by Anheuser-Busch InBev SA / NV (AB InBev) to acquire the entire share capital of SABMiller plc (SABMiller).

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