Anheuser-Busch InBev, the world’s largest brewer, is exploring a
takeover of rival SABMiller in a deal that would create a $275bn
company responsible for one out of every three beers produced globally.
A tie-up between the two brewing giants would rank as one of the six largest corporate takeovers in history and the biggest deal in a year marked by a number of blockbuster mergers and acquisitions across industries, according to Dealogic.
It would mark the latest stage of a remarkable
consolidation in the global brewing industry driven by a group of Brazilian investors led by Jorge Paulo Lemann. They are the founders of 3G Capital, the Brazilian private equity group, which has been buying up US food companies including Heinz, Kraft and Burger King — sometimes with the support of serial investor Warren Buffett.
A series of deals over the past decade transformed AB InBev and SAB into the world’s two biggest brewers and the two — along with Heineken and Carlsberg — make half the world’s beer.
In a statement, SABMiller said in response to press speculation it had been informed that AB InBev intended to make a bid proposal for the company.
“No proposal has yet been received and the board of SABMiller has no further details about the terms of any such proposal,” it said. “The board of SABMiller will review and respond as appropriate to any proposal which might be made.
“There can be no certainty that an offer will be made or as to the terms on which any offer might be made. In the interim, shareholders are strongly advised to retain their shares and to take no action.”
The statement from SABMiller came after the Financial Times told the company it intended to report the approach.
Shares in SABMiller were trading 20.2 per cent higher at £36.23 at midday in London, giving a market capitalisation of £58.6bn ($90.4bn). SABMiller has net debt of around £7.5bn.
AB InBev confirmed in a later statement that it had made an approach to SABMiller over a combination of the two companies.
“AB InBev’s intention is to work with SABMiller’s board toward a recommended transaction,” it said.
A tie-up between the two brewing giants would rank as one of the six largest corporate takeovers in history and the biggest deal in a year marked by a number of blockbuster mergers and acquisitions across industries, according to Dealogic.
It would mark the latest stage of a remarkable
consolidation in the global brewing industry driven by a group of Brazilian investors led by Jorge Paulo Lemann. They are the founders of 3G Capital, the Brazilian private equity group, which has been buying up US food companies including Heinz, Kraft and Burger King — sometimes with the support of serial investor Warren Buffett.
A series of deals over the past decade transformed AB InBev and SAB into the world’s two biggest brewers and the two — along with Heineken and Carlsberg — make half the world’s beer.
In a statement, SABMiller said in response to press speculation it had been informed that AB InBev intended to make a bid proposal for the company.
“No proposal has yet been received and the board of SABMiller has no further details about the terms of any such proposal,” it said. “The board of SABMiller will review and respond as appropriate to any proposal which might be made.
“There can be no certainty that an offer will be made or as to the terms on which any offer might be made. In the interim, shareholders are strongly advised to retain their shares and to take no action.”
The statement from SABMiller came after the Financial Times told the company it intended to report the approach.
Shares in SABMiller were trading 20.2 per cent higher at £36.23 at midday in London, giving a market capitalisation of £58.6bn ($90.4bn). SABMiller has net debt of around £7.5bn.
AB InBev confirmed in a later statement that it had made an approach to SABMiller over a combination of the two companies.
“AB InBev’s intention is to work with SABMiller’s board toward a recommended transaction,” it said.
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