Budweiser maker finalizes $107 billion bid for SABMiller

“AB InBev, based here in Belgium, already is the biggest player in the US market, with brands such as Budweiser and Stella Artois”.

Anheuser-Busch Companies, Inc.is a brewing company founded and based in St. Louis, Missouri.

AB InBev has 155,000 employees in 25 countries.

“It brings immediate value realization for SABMiller shareholders”, he added. We have a deep passion for and understanding of the MillerCoors brands, strategy and culture and believe this transaction is the ideal outcome for this business.

After weeks of negotiations, A-B InBev and SABMiller said early Wednesday that they’ve reached an agreement on terms for a merger that has the approval of both companies’ boards. If Anheuser-Busch InBev had missed the deadline, it would not have been allowed to make another approach for up to six months.

The MillerCoors and SABMiller transactions are conditional upon the receipt of, among other things, customary regulatory approvals. The stock had advanced 19 percent this year through Tuesday, with much of the gain coming on speculation of a deal similar to the one announced Wednesday.

But the company has especially seen its US market share dwindle as drinkers increasingly turn to craft beers.

As a result, Anheuser-Busch InBev would probably pay 69.8 billion pounds.

“There may be a few complications in South America and Mexico, where 80% of AB InBev’s trade lies, and there’s also a substantial amount of SABMiller trade there too”, Colley said.

AB InBev expects to cut cost by $1.4 billion after the takeover.

The merged entity would have annual sales of $73.3bn, making it three times more than competitor Heineken, reported The Associated Press.

SABMiller operates in Nigeria as the owner of two breweries – Intafact Beverages Limited, in which SABMiller made an investment of about US$100m in the Onitsha brewery that was commissioned August 30, 2012, and Pabod Breweries. That partnership owns several major brands in the United States, including Miller Lite, Coors Light and Blue Moon.

Furthermore, the acquisition of the Miller brand rights globally will help accelerate Molson Coors’ growth strategy by strengthening its global beer portfolio as well as expand its presence in high-growth markets.