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AB InBev makes its third offer for SABMiller

by , 07 October 2015

Earlier today, it emerged that Anheuser-Busch InBev had upped its bid to buy SABMiller.

If the buyout is successful, it would result in the merge of the world's two largest brewers.

Let's take a closer look at the new offer…


AB InBev offer SABMiller R868 a share


AB InBev has raised its offer to buy SABMiller [JSE:SAB] following two previous failed bids, reports Fin24. The new cash offer works out at £42.15 or R868 a share.

This offers values SABMiller at almost £68 billion or R1.4 trillion, adds Fin24.

AB InBev had previously offered £38 and £40 a share for SABMiller shares, notes the BBC. If the bid is successful, it would create a company “worth more than £180 billion [R3.7 trillion]”.

This morning, the CEO of AB InBev, Carlos Brito, said “the offer was a good one and SABMiller should recommend the bid to its shareholders,” says IOL. But Mr Brito also said that the current bid isn’t “yet a firm offer”. AB InBev has another week to submit one.


The PIC isn’t in favour of the buyout of SABMiller


In South Africa, the possibility of the two brewers joining forces is facing some opposition, notes BDLive. The CEO of the Public Investment Corporation, Daniel Mathila, said the merger of the two companies “could create a brewer that was too dominant”. Something he’s “not in favour of”.

With SABMiller’s roots in South Africa, AB InBev says it would seek “a secondary listing on the JSE,” says IOL. The brewer “would also support black economic empowerment”.

At time of writing, shares in SABMiller were trading at R725 a share.

Time will tell if AB InBev does make a formal offer for SABMiller. It has until 14 October to do this.

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AB InBev makes its third offer for SABMiller
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