SABMiller agrees 'in principle' to AB InBev's latest offer

Gaëlle Laforest

13 October 2015

SABMiller announced this morning that it has agreed, 'in principle', AB InBev's fifth takeover offer, at £44 a share. Previous offers, all refused, started at £38.

This possible offer values SABMiller at about £71bn, with a part-share alternative that would value the company at £68bn.

The offer also includes AB InBev committing to making 'best efforts' to secure regulatory clearance for the deal to go through. If it was to be rejected by regulatory bodies or by SABMiller shareholders, AB InBev would pay SABMiller a break fee of $3m (approximatively £1.95m).

AB InBev's bid of £44 per share places the value of SABMiller shares about 50% higher than their actual value mid-September, before the takeover proposals started. AB InBev originally had until tomorrow to submit a formal proposal, but an extension has been granted by the takeover panel to allow the details of this possible takeover to be figured out.

The announcement doesn't guarantee an offer will eventually be made, but if combined, AB InBev, which owns Stella Artois, Budweiser and Becks, and SABMiller, owner of Coors, Grolsch and Peroni, would dominate the global beer market.

Related articles

Beer & Cider

AB InBev slams SABMiller for rejecting latest offer

AB InBev has slammed SABMiller for its rejection of its enhanced £65 billion offer to buy the business.The news comes after the latest proposals by AB

Beer & Cider

AB InBev submits revised offer for SABMiller

Anheuser-Busch InBev (AB InBev) has made a formal offer to purchase SABMiller.The deal – equating to £42.15 per share, up from two previous private bi

News

AB InBev issues enhanced final offer for SABMiller

AB InBev has revised and enhanced the terms of its proposed purchase of SABMiller amid shareholder concerns over the plummeting pound.In a statement i

Beer & Cider

SABMiller and AB InBev agree on deal

Talks have ended and agreements have been reached on the terms of the deal that'll see AB InBev acquire SABMiller.A new company called Newco will be f