AB InBev ups its offer for SABMiller to create beer giant

Today’s offer of £42.15 is being considered, but an extra 15p will not swing it. Goldman thinks SABMiller could go for nearly £50, and earlier this year UBS estimated AB InBev would be able to create economic value at a price between £36 and £40.

However, there was no public statement from the Santo Domingos, and shortly after it detailed its approach, InBev was forced by the Takeover Panel to clarify that it “does not now have the support” of the family for its offer.

The new proposal would see AB InBev acquire SABMiller for $64.34 per share in cash, according to a stock exchange filing.

But it added: ‘AB InBev believes that this revised proposal should be highly attractive to SABMiller shareholders and provides an extremely compelling opportunity for them’.

As SAB signalled it was likely to reject the latest offer its largest shareholder, Altria Group, said it supported a deal – piling pressure on the company’s board.

A-B InBev listed details of the proposal on a website, www.globalbrewer.com.

The broker’s analyst Phil Carroll said: “We believe this represents a good deal for SABMiller shareholders and ultimately we expect a deal to be agreed, although the dance could continue for a while yet”.

Brewer SABMiller on Wednesday said its board will consider a higher takeover offer from rival AB InBev even though it “substantially” undervalued the group.

The first two offers were all-cash bids.

SABMiller, the maker of Foster’s, Miller and Grolsch beers, has rejected two previous offers by InBev.

Brito would not say whether the company planned to make a hostile bid before next week’s deadline.

A-B InBev has made several sizable acquisitions in recent years, including its $20.1 billion purchase of the remaining half of Mexican brewer Grupo Modelo it didn’t own in 2013.

SABMiller rejected yet another takeover offer from Anheuser-Busch InBev (NYSE:BUD) on Wednesday.

SABMiller on Tuesday brought forward a trading statement originally slated for October. 15, a move that was meant to give its shareholders information ahead of a formal proposal being made by AB InBev. Following the 2008 A-B purchase, the company pared its workforce in St. Louis, which remains its USA headquarters.

German industrial output unexpectedly slumped in August, the economy ministry said Wednesday, as Europe’s top export power feels the pinch of slowing growth in China and other emerging markets.

Both companies have deep roots in a few of the most historic beer cultures around the world and share a strong passion for brewing as well as a deep seated tradition of quality.

Heineken, the next biggest player, has 9 percent global market share. A merger would create a beverage empire controlling the No. 1 or 2 positions in 24 of the world’s 30 biggest beer markets.

Formerly known as South African Breweries, SAB acquired USA rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.