Brewing Giants May Soon Be Toasting A Deal
The A-B InBev takeover move of SABMiller is coming to a head, as an offer is expected to come this week.
According to industry reports, it will revise an initial informal offer it previously made, which was about $40 a share. This is why more formal offer is being anticipated by analysts.
The company has until Oc.t 14 to make its offer in what would be a huge tapping of major combined beer resources.
Such a complex deal must still clear many hurdles, and a full merger would not happen until late in 2016 at the earliest.
What this affect will have on beer drinkers – particularly in the USA – remains to be seen, but having Budweiser, Miller and Coors all under one beer hall, so to speak, is certainly something consumers and the government are watching with a close eye.
Oddly, the U.S. market is not the primary reason for the proposed takeover. It’s to challenge Heineken to control the growing market of Africa, as beer sales elsewhere are flat.
Primary SAB shareholders Altria and the Santo Domingo family, who together own more than 40% of the group, are both reported to be open-minded about a takeover.