The merged group would also have a market value of about $275 billion.
Advertisement
The deal would fold in a few of the world’s best-selling beers beneath a US$245 billion (NZ$385b) hyper-profitable brewing empire.
The broker also believes the only disposals made will be those required by anti-trust authorities, highlighting the takeover will be about “a global domination strategy on the part of ABI”. The stock ended up at $109.51. Analysts said they do not expect it to be a lengthy bid process.
The information was confirmed shortly afterwards by AB InBev.
What do you think about the proposed AB InBev, SABMiller merger?
“Due to antitrust, AB InBev will have to divest its share of its joint venture with Molson Coors Brewing Co.in the USA”, said William C. Finnie, adjunct professor of strategy at Olin Business School at Washington University in St. Louis.
In July, Buffett and 3G extended their presence in the food industry when H.J. Heinz completed its purchase of Kraft Foods in a deal reportedly valued at $46 billion.
More dismal Chinese industrial data was exacerbated by research from Investec, which claimed “nearly all the equity value of Glencore and Anglo American could evaporate” if commodity prices remain depressed.
Anheuser-Busch Inbev SA (NYSE:BUD) has lost 4.22% during the past week and dropped 0.35% in the last 4 weeks. The 52-week high of the share price is $129.24 and the 52-week low is $102.21. Shares fell 4.8pc to 207.2p.
The end of talks over asset swaps between John Malone’s Liberty Global and Vodafone, which could have seen Virgin Media pass to the latter, put the spark into rival broadcasters ITV, up 2.3p to 250.5p, and Sky, 7p higher at 1,041p. During last 3 month period, -3.49% of total institutional ownership has changed in the company shares.
Advertisement
Mid-cap stock Ultra Electronics was among the favourites after JPMorgan Cazenove lifted its rating to “overweight” from “neutral” thanks to “green shoots of recovery” in western defence spending.
