Following last month’s announcement that the world’s largest beer company would acquire the world’s second-largest beer company, this morning Anheuser-Bush InBev and SABMiller said they had reached a final agreement on the terms of their merger. It’s costing AB InBev about $106 billion.
The deal will no doubt be subject to intense scrutiny by the US Department of Justice. In an effort to preempt that, SABMiller announced this morning that it would sell its share of MillerCoors to Molson Coors for $12 billion.That’s good news for Molson Coors, which in terms of size will now trail only AB InBev in the US.
To help gain antitrust approval, Molson Coors Brewing will acquire SABMiller’s 58-percent stake in MillerCoors for $12 billion, giving it full control of a business that makes Coors Light.
The takeover of SABMiller will give AB InBev beer brands such as Peroni and Grolsch and create a company controlling of about half of the industry’s profit – provided it gets past antitrust regulators. The companies reached a tentative agreement last month after weeks of haggling over the price, and have since been hammering out a formal deal. The Belgian suitor must pay a fee of $3 billion if it fails to get the necessary approvals.
“We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders,” AB InBev Chief Executive Officer Carlos Brito said in the statement.
Full content: USA Today
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