The proposed spin off is intended to quell DOJ fears of an A-B monopoly in Hawaii, but like any proposed merger, the devil is in the details. A-B is also a major player in the market, with its various mainstream and craft beer offerings. In addition to licensing Kona’s intellectual property to PV Brewing, a wholly owned subsidiary of A-B InBev will continue distributing Kona beer throughout Hawaii. But Thomas, who said he considered proposals from several private equity firms and strategic buyers before awarding the business to PV Brewing, believes the allegations of favoritism are overblown. The transaction with PV Brewing is expected to close in August, according to a filing, and Thomas said he still expects the DOJ to conclude its review and give the merger the go-ahead in 2020.

Source: Forbes June 12, 2020 17:15 UTC