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

Luxury Kennels & Cattery
Yorkshire and the Humber, UK

Luxury kennels and cattery with professional grooming parlour (licensed for 142 dogs and 26 cats) in Peterborough for Sale. An opportunity to acquire this luxury kennels and cattery with stunning spacious four bedroom detached residence which must be...

Asking Price: £1,500,000
Turnover: £522,542

LEASEHOLD


Haulage Business
South Wales, Wales, UK

The business has been established for a number of years and has been owned and operated by the founder since that date. Offers invited.

Asking Price: £850,000
Turnover: £2,595,443

FREEHOLD


Bar & Function Room
Ilkley, Yorkshire and the Humber, UK

Situated in the heart of Ilkley town centre just off the busy Brook Street. The yard is a stylish bar offering a wide range of drinks, good, quality food, music with varied DJ’s and live artists all encompassed in an interesting layout. Offers invite...

Asking Price: £775,000
Turnover: £600,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
22
 
Mar
 

Scunthorpe nightclub up for sale | BUSINESS SALE

A former nightclub based in Scunthorpe has been put up for s...

 
21
 
Mar
 

Kent Logistics provider completes a successful acquisition | BUSINESS SALE

A Kent-based personalised logistics provider, backed by Livi...

 
20
 
Mar
 

Warrington construction company enters administration | ADMINISTRATION

A prominent construction business headquartered in Orford Gr...

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