Belgian-Brazilian beer company AB InBev is rumoured to have approached its British competitor SABMiller to discuss an acquisition. If the deal is completed, it would mean the merger of two of the world's largest beer brewers.
Growth in Africa and Asia
There has been no official offer so far from AB InBev, but the company has informed SABMiller it will table an acquisition bid soon. If the entire deal goes through, it would be the biggest deal ever in this industry. A SABMiller acquisition would be good news mainly for AB InBev's Asian and African operations: SABMiller has a 4 billion dollar (3.5 billion euro) and 7 billion dollar (6 billion euro) turnover in those respective areas. The company also has a very strong position in South America.
Over the past 10 years, AB InBev has acquired for more than 100 billion dollars' worth (90 billion euro), which means the company's turnover has quintupled since then. The company considers acquisitions to be the best way to counter the slow growth within the market.