SABMiller and AB InBev seal takeover

Anheuser Busch-InBev has made a formal offer to buy London-listed rival SABMiller for £44 a share in cash, the companies confirmed on Wednesday.

The deal, which is expected to complete in the second half of next year and follows months of negotiations and extended deadlines from the Takeover Panel, represents a premium of around 50% to SABMiller’s closing price prior to renewed speculation of an approach.

SABMiller’s board announced on 13 October that it agreed in principle to unanimously recommend AB InBev’s £44 a share offer to its shareholders.

As part of the deal, SABMiller will sell its stake in its US joint venture MillerCoors to Molson Coors in order to facilitate approval from regulators.

Carlos Brito, chief executive officer of AB InBev said: “We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders. By pooling our resources, we would build one of the world's leading consumer products companies, benefitting from the experience, commitment and drive of our combined global talent base.”

The companies expects pre-tax cost synergies to be phased in over four years following completion of the deal and to reach a recurring run rate of at least $1.4bn a year by the end of the fourth year after completion.

At 0837 GMT, SAB shares were up 1.3% at 4,028.50p and AB Inbev shares were up 0.2% at €111.45.

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