Anheuser-Busch InBev explores takeover of rival SABMiller

The financial daily reported that AB InBev in a statement said that it has approached SABMiller over a combination of the two companies. Shares of AB InBev rose 6 percent.

“They’ve saved some money but not as much as they could if it were one entity”, she said in an interview.

“No proposal has yet been received and the board of SABMiller has no further details about the terms of any such proposal”, SABMiller said in a statement.

AB InBev said Wednesday it had approached SABMiller about a takeover that would merge two companies that control roughly 30 percent of the global beer market. Anheuser-Busch InBev has announced that it plans to make an offer for the company, but SABMiller themselves have no information about what the terms of the offer will be.

The deal is likely to face fewer regulatory problems in Europe compared to other parts of the world, including the U.S. and China, said Annette Schild, an expert in Brussels on European Union competition law. SABMiller sells beers including Miller Lite, Coors Light and Blue Moon in the USA and Puerto Rico through a joint venture with Molson Coors.

SABMiller has confirmed that a merger between itself and Belgian beer maker Anheuser-Busch might occur in the near future, according to CNBC.

Christian Davis, the editor of Drinks worldwide believes the move to act on the deal now is owing to pressure in the beer market: “Beer consumption is pretty flat if not declining in many mature markets”, he said.

Under pressure from the craft sector, the major brewers are eyeing economies of scale as a defence. Along with Heineken and Carlsberg they make half the world’s beer.

Altria, the maker of Malboro cigarettes could be key to whether a deal can be sealed.

Anheuser-Bush InBev, the world’s largest brewing company, is in talks over a potential merger with its biggest rival, Anglo-South African SABMiller.

Shares in SABMiller, whose brands include Peroni and Grolsch, and which employs 69,000 in more than 80 countries soared 19.9 per cent to close at 3,614p.

While AB InBev has dominated the Latin American market, the reason a takeover is attractive is due to SAB miller’s strong influence in Africa, a fast-growing market for beer consumers.