AB InBev to buy back Oriental Brewery in deal worth $5.8B

|By:, SA News Editor

Anheuser-Busch InBev NV (BUD) has agreed to repurchase South Korea's Oriental Brewery from KKR (KKR) and Affinity Equity Partners for $5.8B including debt.

AB InBev sold Oriental to KKR in 2009 for $1.8B in an effort to reduce debt following InBev NV's $52B acquisition of Anheuser-Busch. As part of the deal, AB InBev had the right to buy back the operations within five years.

AB InBev will finance the transaction with internal resources, but will also receive $320M in cash when the deal is completed.

The acquisition heralds further consolidation in the alcoholic-beverages industry, coming just a week after Japan's Suntory Holdings said it had agreed to buy Beam for $13.6B. (PR)