7-UP Bottling Company on Friday reported a 48% slump in profits for the first quarter of 2016. Net income fell to N1bn, down from N2bn reported a year earlier.
The maker of Pepsi-Cola, Mirinda, Aquafina bottled water, among others was weighed by currency-driven headwinds, coupled with rising inflation and competition from other soft drinks manufacturers.
SABMiller’s board will recommend its shareholders accept the final offer of £45 per share made by AB InBev on Tuesday, the company said on Friday, ending a week of intrigue on the future of the beer industry’s biggest merger.
The merger, which is valued at £79bn ($104.89bn), still has to be voted on by shareholders.
Anheuser-Busch InBev’s (AB InBev) $103.4bn acquisition of its smaller rival, SABMiller, dubbed the mega-merger, appeared close to becoming a reality on Friday as China’s Ministry of Commerce gave its conditional approval to the deal. China had been the last major regulatory hurdle for the brewer to overcome.
Anheuser-Busch InBev on Friday reported a drop in second quarter profit as it took a one-time extra-ordinary charge of $1.77bn related its $100bn plus acquisition of SABMiller.
The brewer of Budweiser, Stella Artois, Skol, among others hedged £45bn ($59.36bn) towards the deal in December at an average rate of $1.53 per pound. When Britain voted in favour of leaving the European Union, the currency’s value fell to $1.33 a pound on June 30, when the company’s second quarter ended.
Diageo said on Thursday that revenue for the full year ended June 30 2016 fell 3% to £10.5bn, while net profit declined 6% to £2.24bn ($2.94bn), from £2.38bn a year earlier as currency devaluations and sale of its wine business hit the figures.
SABMiller has put on hold integrating its operations with those of Anheuser-Busch InBev while it considers new offer made by the brewer raising concerns the deal might be in jeopardy.
AB InBev, which is nearing completion of the acquisition of SABMiller increased its cash offer on Tuesday to £45 per share to stop a revolt by SABMiller’s shareholders who have seen the value of their investment decline fallowing Britain’s vote to leave the European Union.
South Africa’s Public Investment Corporation (PIC), a state pension fund and SABMiller’s fourth-largest shareholder said on Wednesday it was in discussions with the brewer about an improved offer from Anheuser-Busch InBev (AB InBev), the fund said.
Coca-Cola said on Wednesday that second quarter net income rose 11% to$3.45bn, from $3.11bn earned in the same period in 2015.
The Atlanta-based soft drinks maker said that net income included non-cash gains from the deconsolidation of its German bottling operations, partially offset by charges from restructuring and re-franchising of its North American territories.
Consumers in Nigeria will further feel the strain of a weakened economy in the second-half of the year as reduced purchasing power, coupled with the high cost of petrol and an anticipated increase in interest rate bites, according to analyst.
AB InBev, the global beer behemoth in the midst of acquiring SABMiller, its nearest rival has increased its cash price share offer for SABMiller to £45 per share, from £44 in November 2015. The company made the offer in the face of dissension from activist investors of SABMiller who are demanding a review of the offer. Since the BREXIT vote for Britain to leave the European Union, the pound sterling has depreciated.
