In a move sure to attract antitrust scrutiny, Anheuser-Busch InBev and SABMiller said Wednesday they will combine to form the world’s largest beer brewer: a $108 billion merger. While it will strengthen Molson Coors’ position in the U.S. beer market, the acquisition of the global Miller brand rights will also strengthen its worldwide beer portfolio thanks to powerful American branding, he added. Molson Coors Brewing Co is leading the race for acquiring the SABMiller’s stake in Miller Coors from the days of merger negotiations between AB InBev and SABMiller began in September.
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“It has always been our dream to build the best beer company bringing people together for a better world and we believe this combination represents a step change for our business and our journey towards that goal”.
The Brazilian and Belgian families that are in control of AB InBev will have their ownership become diluted from over 50% down to around 34.5% and will have a hold of 9 of the 15 members of the board of directors.
InBev said in a statement that the sale is conditional on its acquisition of SABMiller, which it plans to complete in the second half of 2016.
The two companies had already reached an agreement in principle about a month ago, and only a couple key questions had been left unanswered. It was reported that to ease concerns of regulatory authorities, beer maker SABMiller would sell its 58 percent stake in a venture with fellow brewer Molson Coors for $12 billion. The two companies own hundreds of brands, including Budweiser, Corona, Grolsch and Stella Artois, and AB InBev expects to cut costs by $1.4 billion after the takeover.
On Wednesday, Belgium-based Budweiser brewer Anheuser-Busch InBev unveiled the long-awaited final details of its record-breaking takeover of SAB Miller.
SAB has also agreed to sell its stake in the USA brewer MillerCoors to its joint venture partner, Molson Coors, for $12bn.
The combined company’s ordinary shares will be listed in Brussels, Johannesburg and Mexico.
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It listed in London in 1999, which the group claims was the “launch pad” for its global ambitions, since becoming the second largest beer group behind AB InBev. “Research shows the less players there are in a particular market, the higher profit, and I think that’s where AB InBev and SABMiller are going with this”.
