AB InBev poised to announce £68bn takeover of SABMiller
Anheuser-Busch InBev is poised to announce the acquisition of SABMiller Plc for £68 billion on Wednesday.
SABMiller is selling its remaining stake in its US joint venture brewing business, MillerCoors LLC U.S., to Molson Coors of Canada for about $12 billion – the sale is believed to significantly help AB InBev receive approval from US regulators for the SAB acquisition.
The Financial Times said, citing a person familiar with the negotiations, that SAB would sell its 58 per cent stake in the MillerCoors joint venture for about $12 billion (£7.9 billion).
The MillerCoors takeover would be conditioned on the larger beer deal closing, according to the Wall Street Journal.
The sale includes the Miller brand internationally. Molson would get the U.S.’s second-largest brewer, and a family of successful brands including Miller High Life, Miller Lite and Miller Genuine Draft.
Last year MillerCoors generated sales of $7.85 billion, nearly double Molson Coors’s net sales of $4.15 billion.
SABMiller and AB InBev reached a preliminary agreement on a $100 billion-plus merger in October.
A merger of the two beverage giants would create a company making almost a third of the world’s beer. Therefore, to win approval from regulators the combination must divest some of its assets in key markets.