AB InBev finally buys SABMiller
BE AB InBev Beers

After a complicated negotiation of more than 20 days, with 4 different offers, Anheuser-Busch InBev finally managed to close the acquisition of SABMiller.

The acquisition, when approved, will be one of the largest ever made in history and will generate the greatest giant of the beverage sector.

The deal was very complicated: the offerings of the Belgian-Brazilian company had to be revised a few times to satisfy the British company with South African roots.

Negotiations began at 38 pounds per share and in the end, AB InBev will pay 44 pounds for each of share of SABMiller, generating a total value of 71 billion pounds, more than 100 billion dollars.

If we consider the share price on the day when both companies officially announced the start of negotiations, SABMiller will receive a premium of 50%. To raise these astronomical values, AB InBev had to work together with 10 different banks.

It is still unclear whether the anti trust agencies around the world will allow this giant to operate without any restrictions. The new company would own more than a third of the world beer market, with 400 brands, many are market leaders and with considerable slice of the global market, such as Budweiser, Stella Artois, Corona, Brahma, Castle and Miller. The company would either have the first or second place in 24 of the 30 largest global markets.

Some market experts believe that the approval would depend on the termination of the MillerCoors joint venture in the United States and the sale the group would have in CR Snow in China.

The deal paves the way for AB InBev into the Asian and African markets, regions where SABMiller has a strong presence due to the fact that this is its backyard - the company was founded in South Africa 120 years ago.


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