Bud and Stella merger gets blessing from Justice Dept.

Stella Artois brewer InBev has been given approval by regulators to move forward with the $52 billion takeover of Budweiser maker Anheuser-Busch. ┬á The US Justice Department says the deal is conditional on the sale of InBevÔÇÖs Labatt USA subsidiary, a popular brand for upstate New York. The Anheuser-Busch and Labatt brands are the two biggest sellers in the upstate New York market, and officials say that without such a move a merger between InBev and Anheuser-Busch ÔÇ£would likely have led to higher prices for beer in Buffalo, Rochester and SyracuseÔÇØ by eliminating competition.┬á The merger would create the worldÔÇÖs largest brewer, and the proposed deal has some stiff opposition from those would believe it would create a near-monopoly by controlling almost 50 percent of the US beer market and damage the economy in AnheuserÔÇÖs home state of Missouri.┬á InBev has agreed to the stipulation set by officials and will divest its US sales of Labatt beer in order to complete the deal. The company has also promised not to close any US breweries and will keep the companyÔÇÖs North American headquarters in St. Louis. ┬á The Belgium-based brewer will grant a license to the buyer of Labatt USA to brew and sell the brand throughout the US, and will brew and supply the branded beer to the licensee for up to three years. ┬á Daniel Fulham with Fulham Investors, a private equity firm, says possible candidates with the production and financial capacity to create and supply the Labatt brand once InBev stops making it on the buyerÔÇÖs behalf include Pabst, Barton Brands, and Heineken USA.┬á The Justice Department said its antitrust division must approve of the purchaser in order to ensure the deal will restore competition for beer sales in upstate New York that existed before the merger. ┬á As part of the agreement, InBev should complete the sale in 90 days.