AB InBev plans takeover of biggest competitor SABMiller

According to AB InBev (pictured), it has informed SABMiller of its intentions, but SABMiller issued a press release claiming not to have received such notice. “SABMiller has no further details of the conditions of this proposal,” the statement read. The company said it would await more information before responding.

The share prices of both companies went up on the news. The takeover would be one of the largest the beer world has ever seen. AB InBev, brewers of more than 200 beers, including Stella and Hoegaarden, has a market value of €173 billion; SABMiller is worth €80 billion. In 2008, InBev took over Anheuser Busch, brewers of Budweiser, for €38 billion.

SAB – South African Breweries – was created at the end of the 19th century to feed the beer needs of miners. It moved to London in 1999, and three years later took over Miller Brewing of Milwaukee. Along with the aforementioned, it produces brands such as Pilsner Urquell, Peroni and Carling Black Label.

The South African company has been rumoured for some time to be a target for a takeover. Last year it tried unsuccessfully to make a move on Heineken, parent company of Alken-Maes, in an attempt to fend off a possible hostile bid. If the AB InBev move goes through, it would become the untouchable leader in every market in the world.

However, it is unlikely that the two companies would be allowed by competition authorities to join together; some brands will probably have to be sold off before permission is given for the takeover.

Photo: Steven Fruitsmaak/Wikimedia