Marlboro cigarette maker Altria Group has announced it will sell more than $2.2bn (£1.7bn) of its stake in AB InBev, which owns the Bud Light and Stella Artois beer brands.
As a result of this move, Altria will sell 35 million shares of AB InBev stock.
The tobacco giant currently owns about 10% of the world’s largest brewer, worth about $12.7 billion.
Bud Light’s sales have taken a hit following a US boycott over its association with transgender influencer Dylan Mulvaney.
Altria CEO Billy Gifford said in a statement that the sale is an “opportunistic transaction that will allow us to realize a portion of the significant benefits of our long-term investments. Our continued investment reflects our continued confidence in ABI’s long-term strategy, best-in-class global brand and experienced management team,” he added.
Belgium-based AB InBev also agreed to buy $200 million worth of its own stock from Altria, it said in a regulatory filing.
The company, which also owns a number of other major beer brands including Beck’s, Corona and Reffe, announced in February that annual sales in the U.S. fell 9.5% “primarily due to lower volumes of Bud Light.”
Bud Light faced a wave of criticism after sending Mulvaney a personalized beer can to post online.
Within weeks, industry analysts say Modelo, sold in the U.S. by a competitor, will replace Bud Light as the country’s best-selling beer, surpassing competitors such as Coors Light and Miller Lite.
Many on the right criticized the company for being “woke” after Mulvaney posted a social media post promoting the speciality canned beer.
“Wake” is a colloquial American term meaning “a warning against injustice and discrimination in society, especially racism and sexism.”
The term is often used by the right to disparage the left’s views on issues such as climate change and support for minorities.
Musician Kid Rock, NFL player Trae Waynes, and model Bri Teresi have all shared videos of themselves shooting Bud Light cans.
The company’s response to this criticism was subsequently criticized by many on the left, including furloughing two executives responsible for the relationship.
AB InBev’s U.S.-listed shares fell nearly 4% in after-hours trading in New York.