AB InBev sells Australian business to Asahi

Anheuser-Busch InBev has agreed to sell its Australian operations to Japan's Asahi Group for an enterprise value of A$16bn (£9bn) to pay off debt.

AB InBev acquired Carlton & United in Australia when it bought SAB Miller in 2016. The brewer of Foster's and Victoria Bitter makes up almost half the Australian beer market.

The deal gives Asahi a big presence in Australia as part of its strategy to become a global company and marks a shift for AB InBev, the world's biggest brewer, in Asia.

The Belgian brewer scrapped a planned flotation of its business in the region on 11 July when investors refused to meet its valuation. The share offer was meant to raise up to $9.8bn (£7.8bn) to reduce AB InBev's debt of more than $100bn. Most of the proceeds from the sale to Asahi will be used to pay off debt.

Announcing the sale of the Australian business, AB InBev said an initial public offering for its Asian business, Budweiser Brewing Company APAC, would still make strategic sense if it can achieve the right valuation.

AB InBev said: "The divestiture of CUB [Carlton & United], once completed, will help AB InBev to accelerate its expansion into other fast-growing markets in the APAC region and globally. It will also allow the company to create additional shareholder value by optimising its business at an attractive price while further deleveraging its balance sheet and strengthening its position for growth opportunities.

"In addition, AB InBev continues to believe in the strategic rationale of a potential offering of a minority stake of Budweiser Brewing Company APAC Limited, excluding Australia, provided that it can be completed at the right valuation."