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BREAKING AB InBev buys SABMiller for £68bn in record deal

Anheuser-Busch InBev has agreed to buy SABMiller for £68bn, clinching a record deal that brings one out of every three beers sold worldwide under a single company.

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SABMiller’s two largest shareholders, Altria Group and Bevco, can receive cash and stock valued at £39.03 a share for their stakes, which account for 41% of the company. play

SABMiller’s two largest shareholders, Altria Group and Bevco, can receive cash and stock valued at £39.03 a share for their stakes, which account for 41% of the company.

(No More Waffles)

Anheuser-Busch (AB) InBev has agreed to buy SABMiller for £68bn, raising its bid to clinch a record industry deal that brings one out of every three beers sold worldwide under a single company.

The Budweiser maker offered 4 400 pence a share in cash for a majority of the shares in its nearest competitor, gaining brands such as Peroni and Grolsch, and giving it control of about half the industry’s profit. The price is 46% above SABMiller’s closing value on September 15, the day before the companies disclosed they were in contact about a potential bid.

play SABMiller has accepted "in principle" an increased takeover offer from rival


After years of speculation, the deal has been hastened by the impact of slowing economies in the emerging markets of China and Brazil. A 20% drop in SABMiller shares in the months preceding AB InBev’s approach and the prospect of an end to cheap credit also served as a catalyst to a takeover.

The agreement, which is tentative, caps more than two weeks of back- and-forth negotiations over the price. SABMiller said its board is prepared to recommend it.

SABMiller shares fell 1.3% to 3 621.50 pence in London on Monday, and was trading on the JSE at R732.00. AB InBev was little changed at €98.35 in Brussels.

SABMiller spurned previous proposals, including one AB InBev made public on October 7 that valued the company at about £65.2bn.

SABMiller’s two largest shareholders, Altria Group and Bevco, can receive cash and stock valued at £39.03 a share for their stakes, which account for 41% of the company.

Source :  Fin24

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