"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


Lubach: “Fair clothing is a matter of priorities”

15/11/2017

Ever since the Rana Plaza disaster, the clothing industry has clamoured for transparency in the clothing manufacturing branch, but Zondag met Lubach’s Arjen Lubach proved on Sunday that there is no actual transparency yet.

Fashion chain Canada Goose opens first European store

14/11/2017

Canadian fashion chain Canada Goose opened its first European store in London. The brand’s clothing has been in Europe for quite some time, but only at multi-brand stores up until now.

Desigual suffers turnover blow in first three quarters

14/11/2017

Spanish fashion chain Desigual suffered a blow in the first three quarters of 2017, with turnover  down more than 10 %. It mainly struggled in Europe, a region where it generates almost all of its turnover.

Two or three stripes on clothing are Adidas' property

13/11/2017

Swedish store chain H&M can no longer use parallel stripes on its (sports) clothing, because they resemble Adidas’ three stripes too much, according to a The Hague court.

Strong third quarter for Adidas

10/11/2017

Sports clothing manufacturer Adidas experienced a strong third quarter. Its growth was slower than in the previous quarter, but its operational profit exceeded analysts’ expectations.

Yoox Net-a-Porter grows but still failed to live up to expectations

09/11/2017

Online retailer Yoox Net-a-Porter’s third quarter like-for-like turnover grew 17.7 % to 481.8 million euro, which is not entirely what analysts had expected. Its growth slowed down in the United States and China in particular.

Back to top