Pretoria - The proposed takeover of SABMiller may require approval from Finance Minister Nhlanhla Nene, National Treasury said.
“From a cross-border financial flow perspective, South Africa’s legislation requires that any significant cross-border transaction be approved by the Minister of Finance. There is no application to the South African Reserve Bank from SABMiller as yet, so it is premature to comment,” said Treasury on Thursday.
Earlier this week, it was announced that Anheuser-Busch (AB) InBev has offered to buy SABMiller for about $106 billion and that it has won the SABMiller board support for this offer.
According to National Treasury, such a proposal would need to satisfy several conditions and regulatory approvals in many countries prior to closure.
“For South Africa, once a formal application has been lodged with the applicable regulatory authorities, each authority shall consider the application on its merit, in terms of the regulatory framework.”
Some conditions were imposed on SAB when it applied in the late 1990s to re-domicile to the UK. These conditions generally relate to the South African public interest, and the South African holding company operations and assets or any sales proceeds.
“The Minister of Finance will apply his mind to any such application to ensure compliance with existing conditions and the impact on the South African economy,” said Treasury. - SAnews.gov.za
