SABMiller accepts takeover bid by AB InBev

The South African-American brewer SABMiller has agreed in principle to a takeover bid from the Belgo-Brazilian brewer AB InBev. AB InBev will pay 59.4 euro per share for SABMiller. There has been talk of a takeover for some time, but previous offers by AB InBev have been rejected by SABMiller.

On Monday AB InBev tabled its fourth offer for the South African-American brewer. The initial offer of just shy of 51 euro was rejected as were 2 subsequent offers.

The current offer of 59.4 euro is 50% higher than the price on SABMiller’s share on 14 September, the day before AB InBev’s first offer. SABMiller is best-known for its Grolsch, Peroni and Miller brands.

Super brewer

The agreement in principle means that the World’s biggest brewer will take over the World’s second biggest brewer. The new company will become a supper brewery that has a 30% share of the global beer market. The takeover will serve to help AB InBev strengthen its position in Africa.

This begs the question as to whether the new super brewer will be able to hold on to all its activities. It is quite possible that competitions watchdogs in the USA and China will force it to sell off some of its activities. This was already the case when AB InBev took over rivals in the past.

It is still unclear as to whether the takeover will see AB InBev move its headquarters that are currently in the Flemish Brabant city of Leuven. SABMiller’s HQ is in the British capital London.
 

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