Budweiser brewer AB Inbev to sell off Sabmillier's US joint venture
Budweiser brewer Anheuser-Busch InBev said it will sell off SABMiller’s US joint venture as it agreed the final terms of its £71bn (€114bn) mammoth takeover of the London-listed beer giant.
ABInBev and SABMiller said Molson Coors had agreed to buy the remaining 50% stake in Miller Coors for $12bn (£7.9 bn/€11.12bn).
Details of the Miller sell-off comes as the two firms unveiled the long-awaited final agreement of their mega-merger, which marks the largest takeover of a British firm in corporate history.
Belgium-based AB InBev said it is also selling the Miller international business.
The move is part of the brewer’s plans to gain regulatory clearance for the deal, which will bring together the world’s two biggest beer firms.
If given the green light, the tie-up would see the enlarged group own a stable of some of the best-known beer brands, including AB InBev’s Budweiser, Corona and Stella Artois together with SABMiller’s Grolsch and Peroni.
The enlarged company’s shares will be listed in Brussels, Johannesburg and Mexico.
AB InBev said the takeover would strengthen its position in emerging markets such as Asia, Central and South America and Africa.
It said it believes that “more can be achieved together than apart”.
The firm added that it hopes to make savings of at least 1.4 billion US dollars (£924 million) a year from the combined group, which is likely to stoke fears of job cuts.
Carlos Brito, chief executive of AB InBev, said the deal will build the world’s “truly first global brewer”.
He added: “It has long been our dream to build the best beer company bringing people together for a better world and we believe this combination represents a step change for our business and our journey towards that goal.”
Alan Clark, chief executive of SABMiller, said the group’s “next chapter will bring new opportunities for exceptional success”.
