Anheuser Busch Inbev SA (ADR) (NYSE:BUD) on Wednesday said it had finalize the agreement to buy SABMiller PLC for $105.5 billion, a deal that creates a brewing behemoth that will sell roughly one in every three beers world-wide.
Anheuser-Busch InBev is offering to pay 44 pounds, or about $66.49, a share for SABMiller. That would represent more than a 50 percent premium to SABMiller’s closing price in mid-September, before Anheuser-Busch InBev’s approach was announced.
In order to receive U.S regulatory approval, SABMiller also said on Wednesday that it would sell its 58 percent stake in MillerCoors to Molson Coors Brewing Company (NYSE:TAP) for about $12 billion. The closing of the transaction will make Molson second largest brewer in the U.S., with a 25% market share second only to AB InBev’s 45% share.
AB InBev plans to have its shares listed on the Johannesburg Stock Exchange soon after Wednesday’s announcement. The combined company’s ordinary shares will be listed in Brussels, Johannesburg and Mexico. The American depositary shares will be listed in New York.
According to AB InBev Chief Executive Carlos Brito, “By pooling our resources we would build one of the largest leading consumer-products companies, our joint portfolio of complementary global and local brands would provide more choices for beer drinkers in new and existing markets around the world.”
A tie-up between the two beer companies, if it gets the green light from regulators, would bring AB InBev brands such as Budweiser, Corona and Stella Artois together with SABMiller’s Grolsch and Peroni, and give the combined company a major presence in the U.S., China, Europe, Africa and Latin America. Together, AB InBev and SABMiller sell more than 30% of the world’s beer.