The country’s troubles, from a gyrating currency to a flip-flopping government, may be good news for the maker of Budweiser.
Of all the countries whose regulators need to approve Anheuser-Busch InBev NV’s purchase of SABMiller, only one is flirting with a potential junk-bond rating.
It’s South Africa. The country’s troubles, from a gyrating currency to a flip-flopping government, may be good news for the maker of Budweiser as President Jacob Zuma tries to restore good relations with business. The policy reversal should bode well for merger approval in a country where getting a signoff for previous deals has run behind schedule and included jobs concessions for unions.
“South Africa is in a very delicate position and needs to be cautious about the messages its sends to international business,” said David Shapiro, a director at Johannesburg-based Sasfin Securities. “Long delays in approving this deal won’t win the country any friends. Since December it’s looking very different.”