China okays InBev takeover of AB with condition

China's Ministry of Commerce (MOC) approved InBev's buyout of the U.S. company, Anheuser-Busch Cos. (A-B), saying the merger will not damage competition in the Chinese beer market.

"The MOC decided not to prohibit the merger as it will not limit competition in the Chinese market in terms of regions and products," the statement said.

The MOC did restrict the two companies from increasing their existing stake in Chinese beer makers in order to "reduce the negative impact on future competition in the domestic market".

A-B cannot boost its 27 percent share in Tsingtao Brewer Co. and the Belgian brewer cannot increase its existing 28.56 percent stake in Zhujiang Beer.

The MOC also demanded that InBev not seek shar...