A-B InBev finalizes $107 billion bid for SABMiller

From the St. Louis Business Journal

Anheuser-Busch InBev announced Wednesday morning a final agreement to acquire SABMiller for $107 billion in a deal that will combine two of the world’s largest brewers.

A-B InBev will pay 44 pounds per share for SABMiller’s stock, a premium of almost 50 percent from SABMiller’s closing share price on Sept. 14, the last business day before speculation about the deal emerged.

The deal will also include a partial share alternative under which SABMiller shareholders can receive 3.78 pounds in cash and 0.48 restricted shares in lieu of a full cash payment.

In a statement, A-B InBev said the company believes the transaction will create a “truly global brewer” with operations in virtually every major beer market. The deal will strengthen A-B InBev’s position in emerging markets such as Asia, Central and South America and Africa.
“By pooling our resources, we would build one of the world’s leading consumer products companies, benefiting from the experience, commitment and drive of our combined global talent base,” A-B InBev CEO Carlos Brito said in a statement. “Our joint portfolio of complementary global and local brands would provide more choices for beer drinkers in new and existing markets around the world.”

Jan du Plessis, chairman of SABMiller, said the brewer has an “unmatched footprint” in developing markets. “However, A-B InBev’s offer represents an attractive premium and cash return for our shareholders, and secures early delivery of our long-term value potential, which is why the board of SABMiller has unanimously recommended A-B InBev’s offer,” he said in a statement.
To pave the way for the deal, Molson Coors Brewing Co. will acquire SABMiller’s interest in Miller Coors in a deal valued at $12 billion. That deal is conditional on the closing of the A-B InBev’s acquisition of SABMIller, which is expected to be complete in the second half of 2016.
Under the terms of the deal, Molson Coors will acquire SABMiller’s 50 percent voting interest and 58 percent economic interest in MillerCoors. Upon completion of the transaction, MillerCoors will become a wholly owned subsidiary of Molson Coors.

Anheuser-Busch InBev’s has its North American headquarters in St. Louis.