A $106 Billion Acquisition Will Create a Company Worth $275 Billion with 400 Brands

Anheuser-Busch InBev, the world’s largest beer producer, will offer $106 billion to acquire its biggest competitor SABMiller, creating a mega company that would produce a third of the world’s beer.

The two largest beer producers in the world are negotiating this deal “friendly,” reported the British Sunday Times on Sunday, as relayed by Reuters. A source from SABMiller, the second-largest beer producer in the world, which includes brands such as što su Peroni, Grolsch, and Pilsner Urquell, confirmed to the Sunday Times that negotiations are ongoing, that management will be firm on the acquisition price, but is open to the proposal.

The news of a potential acquisition of SABMiller by AB InBev was announced earlier this month, and the Sunday Times now writes that AB InBev’s official offer, valued at $106 billion, could be on the table for SABMiller’s management as early as Monday.

If these announcements materialize, it would be the largest acquisition of a British company in history and one of the most expensive in the world. The shares of British-South African SABMiller are listed on the London Stock Exchange. The merger of these two companies would create a giant worth approximately $275 billion, given the current stock prices of the two beer producers, and the new mega company would have over 400 brands worldwide.

Last year, AB InBev’s share, producer of brands such as što su Budweiser, Stella Artois, Corona, and more than 200 other brands, accounted for 21.1 percent of the global beer market, while SABMiller held 15 percent of the market. If an agreement is reached to merge these two companies, regulators in some countries, such as što su the USA and China, will have to consider whether this constitutes the creation of a monopoly in those markets.