Belgian beer brewer AB InBev has promised to create a South African investment fund to finalize the SABMiller merger faster. It also says every South African employee will keep his job after the merger.
AB InBev has given the South African competition authority those promises after the latter had raised doubts about the merger between the Belgian-Brazilian brewer and SABMiller. The money in the investment fund, 69 million dollars (60 million euro), will be used to support local jobs and to counter the damaging effects of alcohol.
Part of the funds will be used to help 800 small-scale farmers produce different crops for the brewer, while the company also wants to help expand South Africa's production of certain crops destined for beer, so that it can export those as well. Finally, no South African employee will lose their job in the merger and the number of South African jobs in the first five years after the SABMiller merger will not decrease either.
The deal still needs approval, but the South African Minister for Economic Development says AB InBev's proposals will most likely get the job done. It now hopes that these proposals will help speed things along and that the South African competition authority will no longer request any additional delays, which may jeopardize the merger.