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.
This thriving West London pharmacy opportunity is for those seeking a profitable investment or expansion in the health sector, it presents a rare chance to acquire a well-established business due to the owner's retirement.
This is a rare opportunity to acquire a multi award-winning cheesemongers business in the North of England, known for its high-quality cheeses and deli products.
This is a unique opportunity to acquire a highly profitable and well-established retailer of white goods, known across the UK for its excellent reputation and strong supplier relationships.
18
|
Jul
|
Buyers swoop for divisions of collapsed recruitment and logistics firm | BUSINESS SALE
Two separate buyers have acquired three divisions of a Great...
18
|
Jul
|
Hotel group sells off five more locations | BUSINESS SALE
A hotel group with 16 sites in rural and coastal locations a...
18
|
Jul
|
Administrators market £28.4m-turnover furnishing firm for sale | ADMINISTRATION
Administrators are seeking a buyer following the collapse of...
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 the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.