Furthermore, the acquisition of the Miller brand rights globally will help accelerate Molson Coors’ growth strategy by strengthening its worldwide beer portfolio as well as expand its presence in high-growth markets.
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Carlos Brito, chief executive of AB InBev said the company would be looking to make $1.4bn of savings, including almost $500m from streamlining “corporate headquarters overlap” but would not comment on whether that means SAB Miller will lose its United Kingdom headquarters in Mayfair. Note Bevco and Altria’s share of SABMiller is 40.45%, which leaves a few room for other SABMiller shareholders to elect for the PSA.
“With little geographic overlap between the two companies, it is of little surprise the deal has been agreed and the deal will also have limited anti-trust issues”. “To put it simply, we believe more can be achieved together than apart”.
AB InBev had been eyeing its rival SABMiller for a few while, but the minutiae of the deal took a few negotiating. Since then, they had been negotiating the details of the merger. The deal includes a $12 billion sell-off of MillerCoors to Molson Coors, to ease antitrust concerns.
One of AB InBev’s prizes in creating a global beer company will be to gobble up SABMiller’s footprint in Africa.
The deal is expected to be completed in the second half of 2016, pending clearance from shareholders and regulators.
London-listed SAB Miller said underlying sales of its key lagers such as Peroni and Grolsch grew by 7% in the six months to the end of September compared to a year ago.
The world’s top brewer, Belgian-Brazilian behemoth Anheuser-Busch InBev has clinched a $A172. AnHeuser-Busch InBev NV was looking for a buyer for SABMiller’s Miller Coors stake before finalizing the bid offer. The new company would be headquartered in Brussels, Belgium, where InBev is located. MillerCoors is a joint venture of Molson Coors, which now owns 42 percent, and SABMiller.
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“The geographic and product overlap of the two companies is very complimentary, Mr Brito said”. That sale depends on the closing of the Anheuser-Busch transaction. A few analysts see the merger as a defense against the rise of craft beer, which has come as once dominant brands like Budwesier have fallen out of favor in the US – but many of those craft brews are owned by the beer giants.
