SABMiller, the descendant of South African Breweries, has stretched its tentacles across the continent, betting that Africans will shift to higher quality beers as economic development increases disposable income.
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Earlier this month, AB InBev and SABMiller announced that an agreement had been made ‘in principle.’ This was announced on October 13, with AB InBev offering £44 per share in cash (with a partial share alternative for around 41% of SABMiller shares).
Should the deal go ahead, it will be the third-largest corporate deal in the history of business, and create a brewing giant as AB InBev is the world’s largest brewer.
In a joint statement released today, the companies said: “AB InBev has now completed its confirmatory due diligence review of SABMiller and reconfirmed the financial and other terms of the possible offer”. “Drinking is also a way of socializing for us”, Kwara says.
AB InBev, the world’s largest beermaker, plans to buy world number two, SABMiller, in a mostly cash deal worth $106 billion based on AB InBev’s closing share price on Tuesday.
The new deadline for the makers of Budweiser and Miller to make a deal is now set for 5.00pm on 4 November 2015.
Meanwhile, AB InBev has had talks with the South African government’s pension investment arm, the Public Investment Corporation, which is against the offer.
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The new combined company would produce one in three beers sold globally, according to market research group Euromonitor global.
