Exclusive news and research on the wine, spirits and beer business

A-B InBev Expected To Up Bid Price For SABMiller

October 5, 2015

Aiming to create a brewing colossus with a global beer market share of as much as 35%, Anheuser-Busch InBev is expected to launch a revised bid for SABMiller this week, with an offer that may be more than 10% higher than its initial bid.

After making an informal bid in mid-September that was pegged at around £40 ($60.80) a share, A-B InBev is set to sweeten that offer to as much as £45 (68.40) a share, according to The Telegraph. That would value SABMiller at around £70 billion ($106.4b).

A-B InBev’s original offer apparently left SABMiller’s major shareholders—including Altria and the Santo Domingo family, which together own just over 40% of the U.K.-based brewing giant—cold. However, both are said to be open to an enhanced bid.

While an A-B InBev-SABMiller merger would create an unparalleled brewing force, the deal would require significant disposals due to antitrust concerns. In the U.S., where A-B InBev and SABMiller collectively control more than 75% of the beer market, the new entity would almost certainly be forced to sell SABMiller’s 58% stake in MillerCoors to Molson Coors, which owns the remaining 42% of that company.

 

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged : , , , ,

Get your first look at 2016 data and 2017 projections for the wine and spirits industries. Order your 2017 Impact Databank Reports. Click here.

Previous :  Next :