September 4, 2008

InBev Likely to Sell Korean Operations

Belgian brewer InBev is likely to sell its South Korean beer business Oriental Brewery. This sale is expected to help the company in getting rid of a non-core asset and raise money for its acquisition of Anheuser-Busch.

InBev will be acquiring Anheuser-Busch for $52 billion. For this purpose, the company has secured a $45 billion debt package. The package comprises a $7 billion loan, which the company intends to repay by selling certain assets.

Regarding the businesses to be sold, Reuters cited an InBev spokesperson as saying: "We cannot comment at this stage on which businesses specifically would be considered."

In addition to the Korean operations, InBev is also weighing up certain brands in Germany, among other assets, said the Financial Times. It is reported that out of all the businesses, the company has decided to sell Anheuser's entertainment unit.