AB InBev and SABMiller agree takeover deal to create new beer giant

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AB InBev and SABMiller agree takeover deal to create new beer giant



LONDON: -- If at first you don’t succeed, try try again. After being rebuffed several times in its bid to take over SABMiller, brewing giant AB InBev’s perseverance seems to have paid off.

The two companies’ boards say they have agreed in principle on the key terms of a deal said to be worth $104 billion (91 billion euros).

SABMiller – which owns Peroni – says its board is prepared to recommend the offer.

It’s the biggest ever takeover of a UK company.

The maker of Budweiser and Stella Artois – already the world’s biggest brewer – will be bigger still.

The new group will make about a third of the world’s beer, and control half the industry’s profit.

“My big question is whether it’s good for consumers. Of course you’re creating what some have called the OPEC of beer,” said Mike Ingram, Market Analyst at BGC Partners. “It will have enormous global market share, enormous pricing power. And yes, of course if this deal is to be waved through by the competition authorities, there are going to have to be significant disposals both in North America and in China.”

AB InBev says it’s prepared to pay 44 pounds (58.8 euros) in cash per SABMiller share – more than the amounts previously offered.

It has also offered a partial share alternative structure for 41 percent of the company. SABMiller shares rose on the news. The parties have agreed that AB InBev will pay a fee of 2.6 billion euros if the deal falls through.

A new deadline of 28 October has been agreed for AB InBev to make a firm offer.

It’s thought that one factor that may have hastened the deal is the impact of the slowdown in emerging markets such as China – as did a weakening of SABMiller’s position.

The new group will give AB InBev access to Africa for the first time – and increase its presence in Latin America and Asia.

-- (c) Copyright Euronews 2015-10-14

[eliotness]

A sad day for all "real beer" drinkers.

[Cats4ever]

Commercial beer sales in Australia are down over the last decase and craft beers are increasing. I doubt the latter cancels out the former though. We must be getting on the plonk and those awful premixers.

[elgordo38]

Yes and they are taking your money and mine for which we are getting zero percent interest from banks to pay for this fiasco. Dell buying Emco for 67 Billion is another leveraged joke. Banks are paying us no interest and are in turn lending our money to these Robber Barons to expand their already bloated empire. We trusted a lying government that encouraged us to save for our retirement they sold us out down the river to further the concerns of big business and to finance their bloated 18 trillion dollar debt. When the economy hits the skids and interest rates eventually increase which they must either by the Fed (which I doubt) or bond holders demand more. These huge loans will teeter and fall and it will not take much of a interest increase to bring them down. As these huge loans increase and business conditions fall there is only one conclusion to arrive at. Governments of course will fall to because they are the worlds biggest borrowers and they have rigged this whole thing to give them access to cheap money. Good news for US pensioners I have read that your SS will be going up by zero(Google that) percent to match the zero percent interest that banks are paying you on your savings. You are being sacrificed on the alter of debt. All the funny money flying around and zero percent nothingness is what is fueling the stock market not real company earnings. It will all end badly I am afraid as the past has shown time and again. The black swan event could really be the VW scandal

Edited October 14, 2015 by elgordo38