Shareholders of Anheuser Busch Inbev SA, the owners of Budweiser, have approved the company’s bid to take over their business rival SAB Miller. All resolutions of this proposed “combination” were passed in the general meeting. Shareholders of SAB Miller have also approved this. The deal has also been approved by global regulators.
Commenting on the vote, the CEO of Inbev SA said, “We are pleased that our shareholders’ vote brings us one step closer to combining our companies, teams, strong heritage and passion for brewing. We are committed to driving long-term growth and creating value for all our stakeholders”.
Details of the resolution and minutes of the meeting will soon be available on the www.globalbrewer.com and the www.ab-inbev.com websites.
The World’s Biggest Beer Company Now
The deal is estimated to be worth £79bn as it to be completed on October 10. The merger of these two businesses will create the largest beer firm in the world. Happy with the developments, Anheuser says that this will create “the first truly global brewer”. With this mega deal, the group will now be able to make a third of all bear’s in the world.
The Anheuser-Busch InBev SA name will be retained by the group.
The takeover of SAB Miller is likely to improve InBev’s business situation in developing markets such as China and Africa. SAB Miller makes Snow in these markets, which, by volume, is the world’s best-selling beer.
The other brands of SAB Miller that are noteworthy include Grolsch, Pilsner Urquell, and Peroni. AB InBev makes Beck’s, Corona, Artois, Stella, and of course Budweiser. However, to get regulators to approve the deal, the company has agreed to sell off the Grolsch and Peroni brands according to the agreement. Asahi of Tokyo, Japan, will be buying these brands.
Brexit Forces a New Deal
Both the parties actually agreed on the deal last year. However last July, Anheuser Busch had to raise their offer because the value of the pound fell after Brexit. Subsequently, Anheuser Busch increased their offer to £45 for each share of SAB Miller. The new deal was acceptable to Miller.
The market has reacted positively to this move. The Anheuser Busch Inbev SA (EBR:ABI) stock went up by close to 1 percent on Thursday. It was up on Thursday’s trading as well. The stock is likely to see upswing in the near future.