Anheuser-Busch InBev's SABMiller purchase is go

Anheuser-Busch InBev has lined up the long-expected purchase of SABMiller, with talks between the two finally securing a deal.

The companies said in a joint statement on November 11, 2015 that a new Belgian company, called Newco, will acquire SABMiller. AB InBev will also merge into Newco. The transaction, comprising a cash offer of GBP44 per share and a 'partial share alternative', values SABMiller at around GBP71bn (US$107.3bn).

SAB's largest shareholders, Altria Group and the Santo Domingo family's BevCo, have both agreed to take up the partial share alternative, comprising GBP3.78 in cash and 0.48 in restricted shares - equivalent to GBP41.85 per share.

AB InBev also confirmed that it has agreed to the sale of SABMiller’s interest in MillerCoors to Molson Coors.

A-B InBev is targeting combined synergies of "at least" $1.4bn per year within four years of completion of the deal.

Today's news comes almost two months after AB InBev notified SAB of its intentions. A formal offer of GBP42.15 per share, tabled in early-October, was turned down by SAB's board on the same day. A week later, an improved GBP43.50 bid was bettered by the GBP44-per-share that was accepted by SAB's board on 13 October.

Subsequent discussions between the brewers resulted in the UK's Panel on Takeover & Mergers granting two postponements to the deadline for formal agreement to be reached. The latest deadline was set to expire at UK close of trade today.

The purchase is expected to complete in the second half of 2016.

To read AB InBev's official statement, click the following link: http://www.ab-inbev.com/content/dam/universaltemplate/abinbev/pdf/invest...

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