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Labatt divestiture will clear way for completion of Anheuser-Busch, InBev merger
By Lisa Kerner
Charlotte, Nov. 14 - Anheuser-Busch Cos., Inc. and InBev NV/SA announced an agreement with the U.S. Department of Justice that satisfies its requirement to approve the transaction.
If the settlement agreement is approved by the U.S. District Court in Washington, D.C., it will resolve the lawsuit brought by the Department of Justice's antitrust division seeking to block the proposed transaction.
Under the agreement, InBev would grant a perpetual and exclusive license to brew, market, distribute and sell the Labatt beer brands in the United States to an independent third party.
According to the Department of Justice, the transaction, as originally proposed, would likely have led to higher prices for beer in the Buffalo, Rochester and Syracuse, N.Y., metropolitan areas.
Divestiture of the Labatt business in the United States will take place after the merger deal closes.
On Wednesday, a majority of Anheuser-Busch shareholders voted to approve the company's merger with InBev.
The companies said they expect to close the transaction by the end of the year.
InBev, a Leuven, Belgium-based brewing company, and St. Louis-based brewer Anheuser-Busch agreed in July to combine to form Anheuser-Busch InBev in a deal valued at $52 billion, or $70 per share.
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