Beer giants revise takeover terms
4 Aug 2016
SABMiller’s board has backed a revised £79 billion takeover by Anheuser-Busch InBev (AB InBev).
The new terms were proposed following a period of uncertainty resulting from the fall in the value of sterling in the wake of the Brexit vote.
In response, the Belgian-based AB InBev raised its offer from £44 to £45 a share.
Jan du Plessis, chairman of SABMiller, said last week the board’s decision to back the new offer had been difficult, given changes in circumstances since it originally recommended £44 per share in cash last November.
Since then, various factors have affected the value of the offer, most importantly the impact of the Brexit vote on the value of sterling and the re-rating of comparable companies
Jan du Plessis, chairman of SABMiller
“Since then, various factors have affected the value of the offer, most importantly the impact of the Brexit vote on the value of sterling and the re-rating of comparable companies,” he said.
AB InBev said this week the combined group would be headquartered in Leuven, Belgium, and organised into nine geographical zones.
It said it planned to retain a presence in SABMiller’s UK offices in Woking for a transitional period to “capture synergies and best practices” but the new geographical zoning appears likely to result in job cuts locally.
The merger will bring together leading SABMiller brands Peroni and Grolsch with AB InBev labels that include Budweiser, Beck’s, Stella Artois and Corona.
Their combined operations are believed to account for about a third of the global beer market, and the deal has been ranked by business media as the third largest takeover in corporate history.
