Tuesday, 13 October 2015

AB InBev to buy SABMiller

Anheuser-Busch InBev NV agreed to buy SABMiller Plc. for about 68 Million pounds, raising its bid after several rejections to clinch a record industry deal that will bring one out of every three bears sold worldwide under a single company.
The Budweiser maker will pay 44 pounds a share in cash for a majority of the shares in its nearest competitor. Belgian-Brazilian group AB InBev, the maker of Budweiser and Stella Artois lagers, struck a deal with the maker of Foster’s and Grolsch at the fifth time of asking. The deal is in the top five mergers in corporate history and be the largest takeover of a UK Company.

SABMiller two largest shareholders, Altria Group Inc. and Bevco Ltd, can receive cash and stock valued at 39.03 pounds a share for their stakes, which account for 41% of the company. They won’t be able to sell the shares for five years and will have the right to nominate directors. After years of speculation, the deal has been hastened by the impact of slowing economies in the emerging markets of China and Brazil.

SABMiller, the world largest brewer, claimed the previous bids undervalued the company, upping the pressure, ahead of regulatory deadline by which time its rival would have to make an official offer or walk away for at least six months.

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