BRIEF-S.Africa's Competition Commission recommends conditional approval of ABInBev-SabMiller deal
May 31 (Reuters) - S. Africa's Competition Commission
* Recommended to tribunal that Anheuser-Busch InBev-SABMiller deal be approved with conditions
* Found that proposed merger raises several competition and public interest concerns
* Concerned that AB InBev bottling arrangements for Coca-Cola, Pepsi could be a platform for coordination
* AB InBev has undertaken to ensure that employees who are involved in bottling operations for coca-cola will not be involved in its bottling operations for pepsi
* Upon implementation of merger, AB InBev will be entitled to appoint a certain number of directors to board of Distell, its direct competitor
* AB InBev has undertaken that it will not retrench any employee in South Africa as a result of merger
* AB InBev will divest Distell shareholding within 3 years after closing date of transaction.
* Concerned that transaction will have a negative impact on ability of small beer producers, such as craft brewers, to compete effectively
* Recommended AB InBev continues to supply input products that are currently supplied by SAB to small beer producers
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