LONDON – British brewer SABMiller announced on Tuesday it had finally agreed a takeover by Anheuser-Busch InBev, the world’s biggest beer producer — for about $109 billion.
Including debt, the cost of buying SABMiller is around $117 billion (£77 billion, 103 billion euros), making it the world’s third biggest takeover after two mega mergers across the telecoms sector.
Belgian-Brazilian group AB InBev, the maker of Budweiser and Stella Artois lagers, struck a deal with the producer of Foster’s and Grolsch at the fifth time of asking.
Shares in SABMiller, the world’s second-largest brewer, surged on the announcement, with markets expecting a deal to go through despite regulatory hurdles.
“The boards of AB InBev and SABMiller announce that they have reached agreement in principle on the key terms of a possible recommended offer,” the British group said in a statement.
SABMiller added that its board “would be prepared unanimously to recommend the all-cash offer of £44.00 per SABMiller share” to its shareholders.
AB InBev has until October 28 to make the bid formal.
The terms of Tuesday’s deal is meanwhile higher than a fourth bid tabled by AB InBev on Monday that was worth about £43.50 a share.
At £44 a share, the new all-cash offer is a premium of about 50 per cent to SABMiller’s closing share price on September 14, or final business day prior to renewed speculation of an approach by AB InBev.
While most companies’ share prices were in the red on Tuesday following weak Chinese data, SABMiller soared 8.56 per cent to £39.31 and Budweiser maker AB InBev won 2 per cent to 100.40 euros.
