The world’s largest brewer, Anheuser-Busch InBev (AB InBev), unveiledits $107 billion final offer to acquire the world’s second largest brewer, SABMiller.
Carlos Brito, CEO of AB InBev, said the acquisition would help AB InBev become “the world’s first truly global brewer.” While it may be currently controlling 20.8% of the world’s beer in 2014, Ab InBev has been missing a foothold in emerging markets, particularly on the African continent, where South African-born SABMiller has a presence in 38 countries.
Talk of the historic deal, which was initially rejected by SABMiller’s shareholders early last month, has not only cast the light on what creating a world mega-brewer would mean but also offers a lesson in how homegrown African companies can make it big globally.
SABMiller is by all accounts a blueprint for a successful South African-bred company. The company was founded off the back of South Africa’s19th century gold rush, which saw ambitious prospectors rummage Johannesburg in search for gold.
Today, SABMiller, which has a secondary listing on Africa’s largest stock exchange, the Johannesburg Stock Exchange (JSE)—is the second largest company on the JSE by market capitalization. Amidst fears of a delisting, today’s announcement confirms that the company would continue to be listed (pdf, pg. 76) on the JSE, albeit only after the proper restructuring takes place.