U.S. Justice Department To Investigate AB-InBev For Allegedly Curbing Beer Market Competition Amid SABMiller Merger Deal

By KJ Mariño | Oct 13, 2015 09:57 AM EDT

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Anheuser-Busch InBev is currently making headlines after the U.S. Justice Department is currently investigating the claims that the world's largest brewer sought to curb competition in the beer market amid the SABMiller merger deal. Reports claim that AB InBev is allegedly buying distributors, making it harder for fast-growing craft brewers to get their products on store shelves.

AB InBev shook the craft beer realm in the past few months after striking deals for five distributors in three states. According to Reuters, craft companies were complaining because they can't distribute their beers as easily since AB InBev bought distributors. Thus, sales growth stalls. There are also claims that the Belgian giant pushed some independent distributors to only carry their products and end their links with the craft industry.

"Anheuser-Busch has been in communication with the Department of Justice and California attorney general's office about the transactions," an AB InBev spokesperson said in an email. "We are working cooperatively to address any questions they have."

Meanwhile, the probe came as AB InBev seeks to acquire SABMiller for more than $100 billion in what is considered as the largest merger of brewers ever. If the merger pushes through, AB InBev is widely expected to sell SABMiller's stake in U.S.-based MillerCoors, leaving its U.S. market share unchanged at 46.4 percent.

Unfortunately, SABMiller is reportedly unimpressed with the latest merger proposal that AB Inbev offered to start formal merger talks of seek an extension for the Wednesday deadline, Bloomberg Business has learned. So far, SABMiller's board has refused to enter negotiations because the proposals before Monday were too low. And the company may only seek an extension beyond the Oct. 14 deadline if it's confident the additional time will lead to an improved offer.

So, will AB InBev and SABMiller finally have a deal before Wednesday?

AB InBev is still waving around some big bills as the Wednesday deadline approaches. But SABMiller appeared to be uninterested as the company already ditched three proposals. And it remains unclear if AB InBev will still offer another round, as per Chicago Tribune.

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