Third largest merger expected as AB InBev takes over rival SABMiller

Tue, 04 Oct 2016 | MERGER

The third largest merger is set to go ahead with Anheuser-Busch InBev’s takeover of rival brewer SAB Miller in a £79 billion takeover.

The deal, set to be completed on 10 October, will see the group become the world’s largest beer maker.

The deal was initially agreed last year, however, after the referendum result, AB InBev was forced to increase its offer due to a fall in the pound. As a result, AB InBev increased its offer by £1 a share to £45 a share.

To ensure the deal went ahead, AB InBev had to sell SABMiller’s Peroni, Grolsch and Meantime brands to Tokyo-based drinks company Asahi. Despite this, the mega-brewer deal will see them produce almost a third of the world’s beer.

The merger is expected to significantly boost AB InBev’s market share in developing markets such as Africa and China. In China, SABMiller in a joint venture produces Snow, which is the world’s best-selling beer. In total, it gives AB InBev an estimated 27 per cent of global volume and 46 per cent of world beer profits. It also gives them breweries in 17 African countries.

However, the takeover is also expected to come with cost cuttings, with job cuts likely. Currently, this figure stands at up to 5,500 jobs cut. This amounts to around three per cent of the workforce, but a spokesperson said that the cuts would “be implemented gradually, in phases, over a three-year period.”

The approved deal comes after AB InBev agreed to pay the US Securities and Exchange Commission $6 million (£4.6 million). The payment comes after the SEC had found the brewer had used promoters in India to make improper payments to government officials in India.

Talking about the takeover, AB InBev chief executive Carlos Brito said: “We are committed to driving long-term growth and creating value for all our stakeholders."

You can browse food businesses for sale here.


Share this article



Latest Businesses for Sale

Recruitment Agency (Fast Sale)
North West, UK

Indicative offers are required by 12:00hours on Monday 20 January 2020 with a view to completion shortly thereafter. The proposed Joint Administrators are seeking parties interested in the business and assets of a Company that trades as a recruitment...

Asking Price: Offers Invited
Turnover: £2,400,000

LEASEHOLD


Commercial Contractor (Fast Sale)
Midlands, UK Wide

Offers and proof of funding sought by 17:00hours on Friday 24 January 2020. The Joint Administrators are seeking parties interested in the business and assets of a commercial contractor business based in the Midlands.

Asking Price: Offers Invited
Turnover: £3,400,000

Hospitality Industry Recruitment Specialist
UK Wide

Provides highly skilled and professional hospitality staff across a variety of sectors. Recognised as both a preferred and top tier supplier for several of its prestigious clients. Supplying both temporary and permanent Nationwide staffing solutions....

Asking Price: Offers Invited
Turnover: £3,500,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
17
 
Jan
 

Sample book and shade card manufacturer acquired from administration | BUSINESS SALE

The business and assets of Yorkshire-based display products ...

 
16
 
Jan
 

Northgate and Redde shareholders approve merger | MERGER

The proposed merger of listed companies Northgate and Redde ...

 
15
 
Jan
 

SSE sells retail business to OVO Energy | DIVISION SALE

Power utility SSE has announced it has completed the sale of...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
22
 
Dec
 

AB InBev buys Camden Town Brewery | BUSINESS SALE

Craft beer maker Camden Town Brewery has been brought by cor...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources