(Ecofin Agency) - In South Africa, Anheuser-Busch InBev is a step closer to merging with SABMiller. In fact, South Africa’s Competition Commission (SACC) just gave conditional approval for the deal.

While only approval by competition court is left for the merger, observers indicate that this step is more of a formality since this court generally approves all recommendations made by the commission.

Among the conditions imposed AB InBev and SABMiller, there is the sale by the latter of its stake in liquor maker Distell added to a billion rand investment in South Africa’s agriculture over the next five years. This money should be injected the firm’s supply chain, with a focus on emerging black farmers. “This investment will be utilized for the development of the South African agriculture outputs for barley, hops and maize, as well as to promote entry and growth of emerging and black farmers in South Africa,” SACC said

Supporting SA’s poorest black populations is one of the main requirements imposed the two firms given that the merger’s product will have to provide, within two years, a plan to improve the economic conditions of these populations and which will determine their contribution the firm’s development.

Also, AB InBev and SABMiller committed not to lay off any more employees after the merger. 

Last week, the two giants obtained the approval of European markets regulator for the merger.

Aaron Akinocho