Merger costs weigh down SABMiller's profit | Progresiv
SABMiller Plc, the brewer that’s due to be bought by Anheuser-Busch InBev NV later this year, reported a decline in full-year profit as it was saddled with charges related to some African operations and costs associated with the takeover. 
Adjusted pretax profit fell 16 percent to 4.1 billion dollars in the year through March, the London-based maker of Castle lager said Wednesday in a statement. Earnings were hurt by a 572 million dollars charge as the brewer scaled back operations in Angola and war-torn South Sudan, as well as 160 million dollars in costs associated with the AB InBev deal.
The brewer is shedding some assets and shuffling others around as it awaits regulatory approval for the takeover. AB InBev is selling SAB’s Peroni, Grolsch and Meantime brands in Europe to satisfy antitrust concerns as it seeks to close the deal in the second half of the year. Last week, AB InBev transferred SAB’s Panamanian business to its Brazilian AmBev unit, moving the companies one step closer together.
Ongoing turmoil in South Sudan and a lack of hard currency prompted SABMiller to close its brewery there, and it will now operate as an import business, the brewer said. Currency devaluations have also weighed on the brewer in the country, as well as in Angola. The shares were little changed in early London trading.
SABMiller also said it expects its performance to be crimped by the strong dollar in the year ahead, as it prepares to be absorbed into its Belgian rival in the industry’s biggest-ever deal. It said it still expects the transaction to close in the second half of the year. (www.bloomberg.com)
