11th Nov 2015 08:06
LONDON (Alliance News) - SABMiller PLC on Wednesday confirmed it has struck a deal to be acquired by bigger rival Anheuser-Busch InBev NV for around GBP70.0 billion, consolidating the latter's position as the world's biggest brewer by some distance.
Anglo-South African SABMiller also said it has struck a deal to sell its stake in the MillerCoors joint venture in the US to Molson Coors, its partner in the company.
It is selling the stake to help pave the way for regulatory approval to be given for the takeover, though further remedies are likely to have to be offered as the combined group will control about a third of global beer volumes.
The pair entered into talks in October, and SABMiller rejected a couple of bids from AB InBev before agreeing in principle to a 4,400 pence per share bid, which is where formal takeover deal has been agreed. The stock was quoted up 1.6% at 4,040.00p at the open Wednesday.
"SABMiller has an unmatched footprint in fast-growing developing markets, underpinned by our portfolio of iconic national and global brands. However, AB InBev's offer represents an attractive premium and cash return for our shareholders, and secures earlier delivery of our long-term value potential, which is why the Board of SABMiller has unanimously recommended AB InBev's offer," said Jan du Plessis, SABMiller's chairman.
By Sam Unsted; [email protected]; @SamUAtAlliance
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