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AB InBev and SABMiller agree to terms, $106 Billion

Update, October 13th: Anheuser Busch InBev and SABMiller, have initially agreed terms, for a total of a valuation of $106 billon (pounds), $104.2 billon U.S. The acquisition would mean the group controls 30% of the world’s beer production. 

In a world of brewery acquisitions and buyouts, this one (if it occurs) will be one of the biggest.

Anheuser-Busch InBev (AB InBev) is plotting a merger with SABMiller. That’s #1 taking over #2.

The combined worth of the two would be worth $276 billion dollars.

Now this is just the start of what will either be a drawn out negotiation, or a deal shot down by the UK takeover rules deadline of October 14th. That’s when AB InBev would have to make a bid for SABMiller.

It is no secret that sales of AB InBev’s Budweiser and Bud Light have been declining over the past few years. The growth in the craft beer segment has prompted AB InBev to purchase 10 Barrel Brewing, Elysian Brewing, Goose Island, and Blue Point Brewing, with hints of another buyout, potentially in the southeast, coming soon. AB just purchased Virtue Cider this month as well.

SABMiller is headquartered in London, England. Subsidiaries of SABMiller include Miller Brewing Company, Peroni Brewery, Foster’s Group, Bavaria, Pilsner Urquell, Kompania Piwowarska, and South American Breweries.

AB InBev subsidiaries include AmBev, Grupo Modelo, InBev, and of course, Anheuser-Busch.

Bookmark this article for more information surrounding this merger.

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