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UPDATE 1-AB InBev sells beverage can, lid plants to Ball

Published 07/01/2009, 06:03 AM
Updated 07/01/2009, 06:09 AM
BALL
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* Sells 4 plants to U.S. packaging maker Ball Corp

* Ball to pay $577 million in cash

* Ball to supply AB InBev with cans, lids in long-term deal

* AB InBev unit not planning further U.S. plant sales

* AB InBev stock up 1.1 percent, just outpacing sector index

(Adds detail)

BRUSSELS, July 1 (Reuters) - Anheuser-Busch InBev, the world's largest brewer, said it had agreed to sell four metal beverage can and lid manufacturing plants to U.S. plastic and metal packaging products maker Ball Corp.

Ball will acquire the plants, which belong to AB InBev's U.S. metal packaging subsidiary Metal Container Corporation, for $577 million in cash, AB InBev said in a statement on Wednesday.

Under the deal, Ball Corp will enter into a long-term supply agreement to continue to supply AB InBev with metal beverage cans and lids from the divested plants.

At 1000 GMT, AB InBev shares were up 1.13 percent at 26.02 euros, against a 0.8 percent rise for the DJ Stoxx European food and beverage index

The divested can plants are in Wisconsin, Ohio, and Georgia, while the divested lid plant is in Florida.

The group said its metal packaging unit was not working on further deals to sell its remaining seven metal can and lid manufacturing plants.

"The sale of this group of soft drinks-focused plants represents another step in our de-leveraging program, allowing us to rationalize capital while retaining those facilities that remain most relevant to our beer business," Chief Executive Carlos Brito said in the statement.

AB InBev, brewer of Budweiser, Stella and Beck's, has said it wants $7 billion from divestments to repay $45 billion of loans for Inbev's $52 billion takeover last year of U.S. brewer Anheuser-Busch. (Reporting by Antonia van de Velde; editing by Simon Jessop)

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