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.
The company specialises in producing furniture from a wide array of materials, allowing it to act as a one-stop shop for private and commercial clients. Operating nationally, the company caters to 20 active industrial and commercial clients, all of...
LEASEHOLD
Label printing and over-labelling services provided to blue chip clients, predominantly in the food sector.
LEASEHOLD
The assets and intellectual property of disability equipment supplier have been put up for sale after the company appointed liquidators. The company developed a range of products used to regulate the temperature and moisture levels of people who use...
LEASEHOLD
31
|
Jan
|
Administrators still hope to find buyer for gin firm | ADMINISTRATION
Administrators from Begbies Traynor say they still hope to f...
31
|
Jan
|
Grade-II listed York city centre hotel up for sale at £3m | COMMERCIAL PROPERTY
The Judges Court Hotel in York has been put up for sale, wit...
30
|
Jan
|
Bakery manufacturer acquired at 6.3x underlying earnings | BUSINESS SALE
Bakery firm Lees Foods has been acquired by listed bakery bu...
Sign up to receive our acquisition alert emails to get your FREE guide
22
|
Dec
|
AB InBev buys Camden Town Brewery | BUSINESS SALE
Craft beer maker Camden Town Brewery has been brought by cor...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources