SABMiller's flagship brands include Grolsch, Pilsner Urquell, Peroni and Miller.
Anheuser-Busch InBev has increased its offer for SABMiller to almost £68bn, as the prospect of a merger between the two brewing giants becomes increasingly likely.
The revised proposal represents a valuation of £42.15 per share in cash, with a partial share alternative available for approximately 41% of SABMiller shares. The latest bid is a significant increase from Anheuser-Busch’s original offering of £38 per share and amounts to a 44% premium on SABMiller’s closing price before speculation about a takeover was renewed. It was also said to be “highly attractive” to SABMiller’s shareholders.
Last month, we reported that the Belgian-headquartered company had made an initial approach to SABMiller about the possibility of merging. Any deal between the two brewers would create the world’s largest beer maker and house some of the sector’s most well-known brands, including Budweiser and Grolsch.
A combined company would generate annual revenues of $64bn.
Anheuser-Busch chief executive officer Carlos Brito said: “We have the highest respect for SABMiller, its employees and its leadership, and believe that a combination of our two great companies would build the first truly global beer company. Both companies have deep roots in some of the most historic beer cultures around the world and share a strong passion for brewing as well as a deep seated tradition of quality. By bringing together our rich heritage, brands and people we would provide more opportunities for consumers to taste and enjoy the world’s best beers. We also both strive to have a positive impact on the communities in which we work and live as two of the world’s leading corporate citizens. Put simply, we believe we can achieve more together than each of us could separately, bringing more beers to more people and enhancing value for all of our stakeholders.”
Update: SABMiller later in the day rejected the offer stating that the offer was “very substantially” under par, which Anheuser-Busch InBev have contested.
© FoodBev Media Ltd 2020
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