AB InBev confirms interest in SABMiller’s acquisition
BE AB InBev confirms interest in SABMiller’s acquisition

The world’s biggest beer company, AB InBev, confirmed today the speculation: it will make an offer to buy its biggest rival, SABMiller.

SAB Miller released a statement in response to the press speculation today: "The Board of SABMiller notes the recent press speculation and confirms that Anheuser-Busch InBev has informed SABMiller that it intends to make a proposal to acquire SABMiller. No proposal has yet been received and the Board of SABMiller has no further details about the terms of any such proposal."

And the Belgium based brewery also released a statement:  "AB InBevs intention is to work with SABMillers Board toward a recommended transaction. There can be no certainty that this approach will result in an offer or agreement, or as to the terms of any such agreement."

This information confirms months of speculation about the merger between the two giant breweries that would. If the deal goes ahead, this would be the largest deal in the drink industry ever.

The two companies together would hold 50% of that world’s beer market with many of the biggest beer brands in all the continents, such as Budweiser, Miller, Pilsner Urquell, Coors, Snow, Skol and Corona.

The deal would give the new group a world wide reach and a good presence in all fast-growing emerging markets, since AB InBev has a strong business in Latin America, while SABMiller sells very well across Africa.

But it is likely that the new group would have to sell some of its major brands in order to satisfy the antitrust controls. According to Reuters, the two companies together would have a market value around $270 billion, based on current prices.

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