bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Reuters

Anheuser-Busch InBev has approached rival SABMiller about a takeover that would form a brewing colossus accounting for about a third of the beer consumed globally.
Belgium's AB InBev - the world's biggest brewer - makes Budweiser, Stella Artois and Corona, while Britain-based SABMiller - the No 2 player - owns Peroni, Grolsch and Pilsner Urquell beers.
A merged group would have a market value of about US$275 billion, based on current prices, and would combine AB InBev's dominance of Latin America with SABMiller's strong presence in Africa, both fast-growing markets, as well as their breweries in Asia.
"The real attraction is Africa, where AB InBev has no presence, as well as some add-ons in Asia and Latin America," said Societe Generale beverage analyst Andrew Holland.
SABMiller said on Wednesday that AB InBev had informed it that it intended to make a proposal, but the British-based firm added it did not have any further information about the terms.
"The board of SABMiller will review and respond as appropriate to any proposal which might be made," it said.
AB InBev confirmed its approach to SABMiller's board. "There can be no certainty that this approach will result in an offer or agreement, or as to the terms," it said.
Shares in SAB closed up 19.9 per cent and AB InBev's were up 6.56 per cent in European trade - while Heineken, Carlsberg and other rivals also rose on hopes that SAB might seek another merger as a defence strategy.
AB InBev will have to pay at least £40 per SAB Miller share according to analysts - implying an overall price of up to US$130 billion, including SABMiller's debt.
AB InBev's global beer market share was 21.1 per cent last year and SABMiller's 15 per cent, according to industry experts Plato Logic.
One key area of concern to regulators would be the combined group's market share in the US, where AB InBev has almost half the market and SABMiller's joint venture with Molson Coors just under 30 per cent.
Any merged group might also have to sell interests in China, where SABMiller's CR Snow joint venture with China Resources is the market leader, as well as some in Latin America.
"Antitrust regulators in every country where the two companies are in the top three will question a merger," said Erik Gordon, a professor at the University of Michigan's Ross School of Business.


Brewer Anheuser-Busch InBev seeks to buy rival SABMiller to tighten grip on beer market

A merged group would form a brewing colossus accounting for about a third of the beer consumed globally. Photo: Bloomberg

Business

Companies