AB Inbev and SABMiller hit deal to more than $ 100 billion

The two largest breweries in the world agreed on Tuesday to form an even larger group, responsible for a third of the beer produced in the world. The agreement occurred after SABMiller received an improved offer larger rival InBev valued at more than 100 billion dollars.
If completed, the transaction will be the fifth-largest merger of global corporate history and the largest acquisition ever of a company in the United Kingdom.
The new group will unite brands Budweiser, Stella Artois and Corona, AB InBev brands Peroni, Grolsch and Pilsner Urquell, SABMiller. For AB InBev, the purchase also adds breweries in Latin America, Asia and opens new markets in Africa.
AB InBev is partially controlled by 3 g Capital private equity fund, managed by Brazilian investors, and controls indirectly Brazilian Ambev, whose stock price fell on Tuesday.
BTG Pactual analysts stated in a note to clients that the role of Ambev in the agreement follows undefined. "The company informed that the transaction will be financed by a combination of internal financial resources and new debt with third parties. But the announcement of the transaction contains comment that does not rule out the participation of the company in agreement ", wrote the analysts.
Sought, Ambev didn't comment on the subject.
The deal also represents a doubt about the fate of an agreement for the production and distribution of SABMiller agreed in October last year with the Brazilian Group Petropolis, which produces beer Itaipava. Both groups had no comment on the matter on Tuesday.
Meanwhile, the Administrative Council for economic Defense (Cade), stated that it has not yet been officially notified of the agreement between InBev and SABMiller and therefore won't rule for now. Currently, Ambev controls about 68 percent of the Brazilian beer market, according to data from the end of the second quarter.
On the fifth ATTEMPT
After rejecting four proposals of AB InBev, SABMiller accepted the offer improved 44 pounds per share of the company, with a partial alternative that involves money and actions created just to serve the two largest shareholders of SABMiller and providing value to 39.03 pounds per share.
The two largest shareholders of SABMiller, which have together almost 41 percent of the company, are the cigarette maker Altria, which has share of 26.6 percent, and the Colombian Santo Domingo family, which owns the rest.
The slice of £ 44 per share offer is 50 percent higher than the share price of SAB Miller on September 14, the day before speculation about the InBev proposal arise.
Combined with the cash offer to other shareholders, the total price that InBev is offering pay for SABMiller is equivalent to 68.5 billion pounds (104.2 billion dollars) at current prices.
SABMiller's shares closed at an all-time high of more than 9 percent on Tuesday, while the roles of the AB InBev advanced 1.7 percent.
The transaction provides for a fee of 3 billion dollars that the AB InBev will have to pay the SABMiller if the deal cannot be completed because of significant regulatory issues or if the shareholders of AB InBev does not support the deal.
SIGNIFICANT OBSTACLES
The agreement between the beer giants should generate an impact on the rest of the industry, particularly in the United States, where the two companies holds about 70 percent of the market.
The Molson Coors is considered by analysts as the most obvious buyer of the 58 percent that SABMiller owns in a joint venture in the United States.
In addition, analysts say that the combined group will have to sell assets in China, where the CR Snow, SABMiller's joint venture with China Resources, is the market leader.
Business in Europe can also go on sale, analysts argued, which can attract the interest of Heineken and Carlsberg European.
The analyst Trevor Stirling, of Bernstein Research, estimated at 80 percent the chances of the deal being completed, with antitrust issues being the main risk