AB InBev and SABMiller deal concludes in £71bn merger
The merger between two of the world’s biggest beer companies has now concluded after AB InBv agreed terms with SABMiller over a £71bn takeover deal.
The long discussed merger between the two transitioned into an agreement that will see AB InBev will pay £44 for each share in SABMiller.
In order to gain approval SABMiller will sell its 58 per cent stake in MillerCoors, which produces brands such as Miller Lite and Blue Moon, to Molson Coors for $7.9bn.
The merger will result in the biggest beer firm in the world, producing around 30 per cent of all beer and will see brands such as Stella Artois, Corona, Peroni and Grolsch produced under the one company.
Carlos Brito, chief executive of AB InBev said the deal with SABMiller “is about creating the first truly global beer company and bringing more choices to beer drinkers in markets outside of the US”.
The joint company is expected to focus its efforts in expanding into new markets such as Africa and Latin America. This could free up space in the US for Molson Coors to step up its advertising and better compete with its rival.