Budweiser maker Anheuser-Busch InBev says it has finalised the terms of a USD107 billion takeover of SABMiller that will combine the planet’s two biggest brewers and create a company that makes almost a third of the beer consumed worldwide.
As part of the deal, SABMiller will sell its stake in a venture with Molson Coors. This should ease concerns that AB InBev would have a stranglehold on the U.S. market after the merger and pave the way for approval by American regulators.
AB InBev and SABMiller had twice extended the deadline for a formal offer implementing an agreement in principle announced on Oct. 13.
AB InBev is seeking to bolster growth by acquiring SABMiller’s brands in Africa and Asia as changing tastes and craft beers cut sales in developed markets.
“We are excited about our agreement on the terms of a recommended acquisition of SABMiller to build the world’s first truly global brewer,” Carlos Brito, AB Inbev CEO, said.
“Our joint portfolio of complementary global and local brands would provide more choices for beer drinkers in new and existing markets around the world,” he said.
AB InBev expects to cut cost by USD1.4 billion after the takeover.