A merger between Anheuser Busch-InBev and SABMiller, the world’s two largest brewers, is coming under criticism from the International Brotherhood of Teamsters.
{mosads}Teamsters President Jim Hoffa urged the Department of Justice (DOJ) to reject the beermakers’ $100 billion merger as it is currently proposed in a letter obtained Tuesday.
The Teamsters are concerned about hundreds of planned layoffs at a Miller brewery in Eden, N.C., which is slated to shut down in September. The brewery, where workers are represented by the Teamsters, is responsible for more than 12 percent of the company’s production.
Hoffa suggested the Eden brewery closure was intended to pave the way for the DOJ to approve the merger, but he urged the company to sell it rather than shut it down.
“The company decided to close and not sell the brewery because it did not want the facility to end up in the hands of a competitor,” Hoffa said.
“If this closure is permitted to move forward, it will not only affect good American jobs — roughly 500 at the brewery alone — but also negatively impact competition in the industry,” he added.
The DOJ should reject the beer company merger unless the companies agree to keep the Eden brewery operating, Hoffa said.