Monday, August 01, 2016

Council of SABMiller accepts the proposed purchase of AB InBev

The Board of Directors of British Brewer SABMiller agreed this Friday (29) the proposed purchase by the giant AB InBev, Belgian and Brazilian capital, on which advertises itself as one of the largest mergers/acquisitions in history. The deal is valued at more than $ 100 billion.
The new offer presented by industry-leading beers was 45 pounds, one more than in the previous proposal, for each share of SABMiller – number 2 in the world, which gives the brewery a market value of 79 billion pounds (equivalent to US $ 103 billion), according to Agence France Presse.
The Board of Directors of SABMiller indicated in a statement that "provides for unanimity" recommending its shareholders to accept the transaction.
The buyout offer was launched at the end of last year, but the AB InBev increased its offer for British rival, partially offsetting the devaluation of the pound sterling brought about by the victory of Brexit.
The value of the new offer, however, was lower than that estimated by the shareholders of SABMiller, which before the Brexit resisted the merger/acquisition and evaluated the company''s price at $ 121 billion.
AB InBev, the world''s largest brewery, celebrated the decision of his main rival so far and expressed their willingness to conclude "as soon as possible", according to France Presse.
Next steps
Since the first approximation, "many factors affect the value of the proposal, in particular, the impact of the vote in favour of the Brexit about the pound sterling", admitted the President of SABMiller, Jan of Plessis, quoted in the statement.
The operation has already received the endorsement of the EU competition authorities, but also requires the authorization of the antitrust authorities about 15 countries.
AB InBev has agreed to a series of concessions to get EU approval, among them get rid of the majority of SABMiller''s business in Europe, including Foster''s and Grolsch brands-and unlink from Japanese Peroni brewery.
The new beer giant will combine the brands Budweiser, Stella Artois and Corona, AB InBev, with Peroni and Grolsh, Pilsner Urquell, SABMiller, decreasing the main competitors such as Heineken and Carlsberg.
When buying SABMiller, AB InBev would add Latin America markets like Colombia and Peru and would in Africa at a time when some of its domestic markets as the United States are weakening as consumers favor craft beers and drinks.
Brazilian billionaire behind the business
AB InBev is partially controlled by 3 g Capital private equity fund, managed by Brazilian investors, and controls indirectly the brazilian Ambev.
AB Inbev has among its owners the Brazilian Jorge Paulo Lemann (Rico Brazil''s man with a fortune estimated at more than $ 25 billion, according to Bloomberg), Carlos Alberto Sicupira and Marcel Herrmann Telles.
3 g Capital Fund owner and partner of AB Inbev, Lemann has done business in partnership with Warren Buffet''s Berkshire Hathaway, as the purchase of Heinz and the company''s merger with Kraft Foods.
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