AB InBev, the number one beer company in the world by volume has formally agreed to buy SABMiller, the number two for £71.4bn ($107.7bn), in a deal that will create a behemoth that will make about 30 percent of all beers sold world-wide.
As part of the merger, SABMiller has agreed to sell its stake in a U.S. joint-venture, MillerCoors, to its partner, Molson Coors Brewing Co, which holds the remaining stake plus MillerCoors’ international portfolio for $12bn.
The U.K. Panel on Takeovers and Mergers on Wednesday, 4th November, agreed to extend the deadline for AB InBev’s $104bn takeover bid of its smaller rival, SABMiller, to give both companies more time to finalize the terms of the deal.
AB InBev now has until 5pm on 11th November GMT, to make a formal offer, or say it does not intend to make an offer. This would be the second time the U.K. Takeover Panel would grant an extension to both companies since they announced on 13th October to an ‘agreement in principle’.
AB InBev announced today that it has received a deadline extension from the U.K Takeover regulators until 5pm on November 4 to formalize its merger with SABMiller.
AB InBev said it had carried out a due diligence of its takeover proposal of SABMiller and had been granted another week by the U.K Takeover Panel to make a formal bid.
AB InBev and SABMiller announced today that they have agreed ‘in principle’ to merge as one company.
AB InBev agreed to pay SABMiller’s shareholders £44 per share in cash, with a partial share alternative for around 41 percent of SABMiller’s shares.
A statement from both companies issued this morning, said: “The Board of SABMiller has indicated to AB InBev that it would be prepared unanimously to recommend the all-cash offer of £44 per SABMiller share to SABMiller’s shareholders subject to their fiduciary duties and satisfactory resolution of the other terms and conditions of the possible offer.”
Anheuser-Busch InBev (AB InBev) has upped its bid to acquire SABMiller ahead of a Wednesday 14 October deadline.
AB InBev has raised the all-cash part of its bid, which is meant for majority of SABMiller’s shareholders from £42.15 to £43.50 per share, a premium of 48 percent to SABMiller’s closing price on September 14, the day before the initial bid.
SABMiller, the brewing giant and maker of such international brands as Peroni and Miller, and local brands like Trophy and Hero has rejected an unofficial bid proposal made by Anheuser-Busch InBev (AB InBev), the world’s largest brewer at £42.15 per share or $103.6bn / £68bn saying that the offer was too low.
“AB InBev needs SABMiller but has made opportunistic and highly conditional proposals, elements of which have been deliberately designed to be unattractive to many of our shareholders. AB InBev is very substantially undervaluing SABMiller,” said Jan du Plessis, chairman of SABMiller.
AB InBev could make an offer to acquire SABMiller as early as this week, with reports over the weekend saying a preliminary offer of $106bn was made.
Reports say that the two beer giants have begun ‘friendly talks.’
Earlier this month, AB InBev and SABMiller confirmed that a merger was being discussed, with AB InBev intending to make an offer to acquire SABMiller, though no offer has yet being received.
Big news in the beer world. Anheuser-Busch InBev (AB InBev), the world’s largest brewing company and SABMiller, the second largest and the owner of such Nigerian brands as Trophy lager beer and Castle from the stables of International Breweries and Hero lager by Onitsha based Intafact Beverages on Wednesday, 16th September said both companies were exploring a mega tie-up. A mega merger of this magnitude would create a beer company controlling approximately 30 percent of global beer volumes.
