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China Clears AB InBev-SABMiller Merger

The pending merger between the world's two largest brewers on Friday received approval from Chinese regulators.

The pending merger between the world's two largest brewers on Friday received approval from Chinese regulators.

China's commerce ministry announced the approval of Anheuser-Busch InBev's acquisition of SABMiller, according to Reuters, on the condition that the merged company sell SABMiller's stake in the brewer of Snow Beer.

AB InBev earlier this year announced plans to sell 49 percent of the China Resources Snow Breweries joint venture to China Resources Beer -- the state-owned entity that owned the remaining 51 percent -- for $1.6 billion once the merger was completed. Snow Beer is the world's largest beer brand by volume.

Company officials said the deal previously received approval from antitrust regulators in the U.S., European Union and South Africa.

AB InBev sought the massive merger with its top brewing rival in order to access growing markets in Latin America and Africa, but the recent vote in favor of the U.K. exiting the European Union hurt the value of the pound and prompted shareholder concerns about the initial offer.

AB InBev responded with a larger offer this week and is awaiting word from SABMiller's board.

"We believe the revised and final offer represents a compelling opportunity for all SABMiller shareholders," company chief executive Carlos Brito said in an earnings call, Reuters reported.