Giant drinks group created by deal
SAB Miller finally agrees to £68bn takeover by AB InBev
The Belgium based group finally won the day at the fifth attempt with a cash and shares offer worth £68 billion.
AB InBev will pay £44 in cash per SABMiller share, with a partial share alternative set at a discount and limited to 41% of the SABMiller shares.
It has a new deadline of 28 October to lodge a firm intention to bid and SABMiller said its board would accept the offer which is 50% higher than before the speculation of a tie-up first emerged.
SAB Miller turned down four previous offers from AB InBev at £38, £40, £42.15 and £43.50 per share.
AB InBev will be forced to pay a break fee of £1.9bn if the transaction does not complete.
The deal is among the five biggest and the largest takeover of a UK company. It brings together AB InBev’s Budweiser, Stella Artois and Corona lagers with SABMiller’s Fosters, Peroni and Grolsch.
AB InBev is attracted to SAB Miller’s Latin American and Asian breweries and will enter Africa for the first time.
SABMiller has also tapped into the craft beer scene, buying one of the UK’s most successful independents, London’s Meantime Brewing Company.