Japan's Asahi takes on 7.4b euro loans to fund AB InBev asset buy

[TOKYO] Japanese beer maker Asahi Group Holdings Ltd said on Tuesday it will take on 7.4 billion euros (S$11.21 billion) in bank loans to finance its acquisition of European assets from Anheuser-Busch InBev SAC NV .

The brewer, known for Japan's best-selling "Super Dry" beer, in December agreed to buy a group of eastern European beer brands, including Pilsner Urquell, from AB InBev for 7.3 billion euros.

In a statement, Asahi said it will take on short-term loans from Sumitomo Mitsui Banking Corp and Mizuho Bank Ltd.

Companies typically borrow on a short-term basis as bridging loans before securing permanent financing through, for instance, syndicated loans or bonds.

An Asahi spokesman said nothing has been decided about permanent financing.

REUTERS