But symbolism is all there is to it. AB InBev was formed when the Belgian-Brazilian InBev bought Anheuser-Busch in 2009, and the company is based in Belgium. AB InBev, whose brands include Budweiser and Stella Artois, and which employs 155,000, rose 6.4 per cent to just over €100.
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Brands: Miller, Peroni, Milwaukee’s Best, Grolsch.
The financial daily reported that AB InBev in a statement said that it has approached SABMiller over a combination of the two companies.
The deal would fold in some of the world’s best-selling beers beneath a US$245 billion (NZ$385b) hyper-profitable brewing empire. But there may be some consolation, said Mr Rossouw.
According to antitrust law experts, U.S. regulators likely would reject the deal without major divestitures because the merged company would control about 30 percent of the world’s beer market. AB InBev already has about 45 percent of the US market, and MillerCoors, in which SABMiller owns a 58 percent economic stake, has around a 25 percent US market share. “The board of SABMiller will review and respond as appropriate to any proposal which might be made”.
SAB confirmed that rival Anheuser-Busch InBev had said it was preparing to table an offer, after months of speculation about a possible bid for the FTSE 100 listed firm.
Nick Petrillo, an analyst with the market research company IBISWorld, said that much of the industry has consolidating as it has grown in recent years – a movement that is partially seen as a reaction to the rise of craft beer in the US.
Anheuser-Busch InBev has approached its rival SABMiller about a merger, Reuters reports.
“The real attraction is Africa, where AB InBev has no presence, as well as some add-ons in Asia and Latin America”, said Societe Generale analyst Andrew Holland. SABMiller sells beers including Miller Lite, Coors Light and Blue Moon in the U.S. and Puerto Rico through a joint venture with Molson Coors.
SABMiller became the world’s second-biggest brewer in 2002, when South African Breweries took over Miller Brewing Co., based in Milwaukee, Wisc.
The creation of a beer behemoth would also pressure other alcoholic beverage makers such as Constellation Brands (NYSE:STZ), which makes a variety of liquors, wines and beers, including Corona and Black Velvet whiskey.
AB Inbev must make a formal offer for the company by October 14. Such a consolidation would have made SABMiller too big for AB InBev to target, but Heineken ultimately rebuffed the overture.
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That value soared Wednesday, with SABMiller’s share price up 20 percent to 3,626 pence in London midday deals.
