Asahi to buy Pilsner Urquell and four other beer brands from AB InBev for €7.3bn

The company's shares dipped when news of the deal broke...

Asahi to buy Pilsner Urquell and four other beer brands from AB InBev for €7.3bn

Petr David Josek AP / Press Association Images

Japanese beer firm Asahi has snapped up five of Anheuser-Busch InBev's Eastern European brands in a deal worth €7.3bn.

The company is off-loading Pilsner Urquell, Tyskie and Kozel and two other brands as part of its attempt to secure clearance from competition authorities to take over SABMiller.

This is the Asian firm's biggest European acquisition - it previously bought Peroni and Grolsch from SABMiller earlier in this year for €2.55bn.

The deal will give the company control of 9% of the European beer market when Russia is excluded.

Bloomberg

Asahi shares took a dive after news of the big money deal broke. The amount spent was almost double the figure that the company had allocated for mergers and acquisitions.

An Asahi spokesperson told The Wall St Journal that this deal will help the company to establish itself as a "global player that leverages its strengths originating in Japan."

This transaction is subject to approval from the European Commission and is expected to be completed during the first half of 2017.