"SABMiller accepts AB InBev bid, merger company will remain Belgian"

"SABMiller accepts AB InBev bid, merger company will remain Belgian"

With SABMiller's board of directors accepting AB InBev's fifth offer and "unanimously" recommend the deal to all of the group's shareholders, the resulting merger will be one of the world's largest companies with its main office still in Belgium.

Fourth increase did the trick

AB InBev's offer now stands at 44 euro per share, 50 % above SABMiller's share price immediately before the news broke about the acquisition plans. That means the Belgian-Brazilian company will have to pay 96 billion euro (in cash and stock) to acquire the number two in the beer market, British-South African SABMiller.

 

SABMiller's board had only last week turned down several other bids: at 38, 40, 42.15 and 43.5 pounds per share, as they were "substantially too low". In the end, AB InBev will pay 44 pounds (59 euro) per share, which has prompted SABMiller's board to "unanimously" recommend the bid to all of its shareholders.

 

Worldwide giant with global coverage

When both beer giants become one company, it will create a giant that controls about 30 % of the worldwide beer market, but it will have to sell off several brands in different regions to make sure it does not create a monopoly. In the United States for example, the company would own about 75 % of the beer market, which is something the American Bureau of Competition will never allow.

 

With this acquisition, Carlos Brito has put the crown on his years of mergers and acquisitions and AB InBev gains a foothold in regions it did not enter yet (like Africa and Australia). Even the last pieces of the Latin American beer puzzle have now been filled.

 

It is not clear how the group will be called, but the press release does indicate that AB InBev intends to remain a Belgian entity after the acquisition. A new company will be created which will contain both AB InBev and SABMiller, while AB InBev writes it intends to keep its main office in Belgium.

Questions or comments? Please feel free to contact the editors


Zalando's profit is slightly below expectations

17/01/2018

German fashion web shop Zalando has grown nearly a quarter in the past fiscal year and its company profit also nearly grew 5 %, although the latter was slightly below its own expectations.

Record turnover for Yoox Net-a-Porter in 2017

16/01/2018

Online retailer Yoox Net-a-Porter (YNAP) achieved a record turnover in 2017, surpassing two billion euro. That is a growth of more than 10 % compared to the year before, when it just missed that milestone.

Hugo Boss reaches growth targets for 2017

16/01/2018

German fashion brand Hugo Boss has managed to reach its targets for 2017, partially thanks to strong fourth quarter growth. For its full fiscal year, turnover grew 3 % (excluding exchange rate fluctuations).

C&A owners consider sale to Chinese investors

15/01/2018

The Dutch Brenninkmeijer family is considering to sell clothing chain C&A according to German magazine Der Spiegel. One option is to sell to Chinese buyers.

Gucci opens restaurant and museum in Florence

12/01/2018

Fashion brand Gucci has opened a museum and a restaurant for fifty people in Florence. Three-star chef Massimo Bottura will serve high-quality meals there. A dish will cost between 20 and 30 euro.

Kering hands over control of Puma

12/01/2018

French luxury group Kering will get rid of 70 % of German sports brand Puma’s shares and wants to turn its attention to its luxury brands. Puma does not fit into that category.

Back to top