London (AFP) – Main stock markets in Europe climbed on Wednesday, prolonging its streak to a fourth straight session, as the shares rise in dominance for the world’s biggest beer brands.
Anheuser Busch Inbev SA (ADR) (NYSE:BUDv), the world’s biggest brewer, raised its offer on Wednesday for British rival SABMiller to 68 billion pounds (92 billion euros or $103 billion), or 42.15 pounds per share. It was told that it was still too low to achieve one of the biggest corporate takeovers.
The deal pursued by Belgian-Brazilian AB InBev would generate a global “megabrewer” that would merge internationally famous brands such as US beer Budweiser and Stella Artois with Grolsch and Foster’s.
However, the board of Britain’s SABMiller, which has already rejected two previous offers from its rival, has “unanimously rejected” the third offer as significantly too low.
A merged new group would be worth around 220 billion euros ($250 billion), and analysts consider a new fourth offer to be likely.
Jeremy Cunnington at Euromonitor International stated that “AB InBev’s bid for SABMiller is the inevitable conclusion of over a decade of consolidation within the brewing industry.”
Simon Davies of Canaccord Genuity in London added, “We should not be surprised to see a slightly raised offer over the next week.”
AB InBev gained 0.60% to finish at 98.65 euros in Brussels after pushing through the 100 euro barrier as SABMiller shares in London closed up 0.30% at 3,633 pence.
German shares still rose despite the country’s industrial output collapsing unpredictably in August, stated by the economy ministry Wednesday, as Europe’s top export power feels the slowing growth in China and other developing markets.
Frankfurt’s DAX 30 closed up 0.68% to 9,970.40 points and the Paris CAC 40 rose 0.14% to 4,667.34 points compared with Tuesday’s close.
London’s benchmark FTSE 100 index finished at 0.16% to 6,336.35 points, in a market where rising heavyweight mining stocks were balanced by declines in airline shares.
In foreign exchange, the euro dropped from $1.1271 to $1.1250 late on Tuesday in New York.
Wall Street stocks were diversified on Wednesday as stronger oil prices lifted petroleum-linked shares as certain company earnings disappointed.
Dow member Exxon Mobil Corporation (NYSE:XOM) l gained 0.27% mid-day while US oil prices moved up toward $50 a barrel.
However, Yum! Brands, Inc.(NYSE:YUM), which owns the KFC and Taco Bell fast-food chains, dropped 18.5% as it decreased its earnings forecast due to slow sales in China.
Close to mid-day in New York, the Dow Jones Industrial Average was 0.24% greater at 16,830.58.
The wide-based S&P 500 bordered up 0.03% to 1,980.61, while the tech-rich NASDAQ Composite Index fell 0.10% to 4,743.56.
In Europe, Britain’s largest retailer, supermarket Tesco, stated it is facing a net loss during its first half, partly on expenses linked to an accounting scandal.
After tax losses were at 365 million pounds in the six months towards the end of August, compared to a net profit of 6.0 million pounds during the consequent period a year earlier, Tesco stated.
Tesco shared rose 2.52% to close at 197.
Asia stock markets were greater on Wednesday, with Hong Kong closing up 3.13% and Sydney adding 0.59%.
Seoul progressed 0.76% by the close enhanced by Samsung shares towering 8.7% after it announced it anticipated to see an 80% increase in third-quarter operating profit.
Japanese stocks stretched gains to a sixth session on Wednesday, finishing at 0.75% after the Bank of Japan decided to hold on fresh stimulus measure despite slow growth and stagnant prices.