Paris: Anheuser-Busch InBev NV offered to buy SABMiller Plc for about £68.2 billion ($104 billion), seeking to combine the world’s two largest brewers in a record industry deal after SABMiller spurned two previous proposals made privately.
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AB InBev, meanwhile, seems a little irked as well: “AB InBev is disappointed that the Board of SABMiller has rejected both of these prior approaches without any meaningful engagement”. AB InBev proposes paying £37.49 a share in cash and stock for the stakes held by SABMiller’s two biggest shareholders, the potential acquirer said.
“SABMiller is the crown jewel of the global brewing industry, uniquely positioned to continue to generate decades of stand-alone future volume and value growth for all SABMiller shareholders from highly attractive markets”, du Plessis said. “AB InBev believes that the revised cash proposal of GBP42.15 per share is at a level that the board of SABMiller should recommend”.
SABMiller rose 1.1 percent to 36.60 pounds at 1:40 p.m.in London. Meanwhile there is a division of opinion among SABMiller’s shareholders, while the issue of regulatory hurdles in United States and China appear to be adding friction.
Peroni brewer SABMiller (LON:SAB) has rebuffed a third takeover bid from rival Anheuser-Busch InBev (ABI).
Chief executive Carlos Brito said: “Put simply, we believe we can achieve more together than each of us could separately, bringing more beers to more people and enhancing value for all of our stakeholders”.
If a deal is agreed it would create a drinks giant worth more than £180bn and rank among the top 10 takeovers in global corporate history.
A combined SABMiller and AB InBev would give the company increased reach not just among craft-beer drinkers stateside, but across the globe-in Africa and South America, the two companies each dominate substantial but different markets.
“Altria Group, which owns 27% of SABMiller and has three representatives on the board, has publicly stated that it supports our proposal”, AB Inbev said.
“AB InBev is very substantially undervaluing SABMiller”, he said.
AB InBev said the partial share alternative would take the form of a new, separate class of it shares that would allow it to offer a higher price than it otherwise would be able to.
SAB Miller has officially turned down the offer but doing so could be facing a split amongst its shareholders and board.
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This morning AB InBev said SABMiller’s statement “lacks credibility” because its £42.15 per share bid is around 44% up on SABMiller’s share price before renewed speculation about a deal began (£29.34 per share on September 14).
