MILWAUKEE - Anheuser-Busch InBev announced Wednesday that it
has finalized its agreement to purchase SABMiller for $107
billion, which is still dependent on the merger being
approved by regulatory committees.
announced Wednesday is that AB InBev has formed an agreement
with Molson Coors Brewing Company to complete the
divestiture of SABMiller’s interest in MillerCoors LLC. The
total transaction, according to the announcement, is valued
at $12 billion and is conditional on the completion of AB
InBev’s previously announced acquisition of SABMiller. The
SABMiller transaction is expected to be completed in the
second half of 2016, subject to satisfying the relevant
part of the purchase agreement, Molson Coors will obtain
SABMiller’s 50 percent voting interest and 58 percent
economic interest in MillerCoors. Upon completion of the
transaction, MillerCoors will become a wholly owned
subsidiary of Molson Coors, and Molson Coors will have full
control of the operations and resulting economic benefits of
MillerCoors, according to the announcement.
the merger is completed, the combined company would control
about 31 percent of beer sales globally. AB InBev agreed to
pay $3 billion to SABMiller if the deal fails to close
because of failure to get regulatory approval or the
clearance of the AB InBev shareholders.
Together, AB InBev and SABMiller own hundreds of brands of
beer, including Budweiser, Miller, Corona, Grolsch and
Stella Artois across multiple continents. Reportedly, AB
InBev expects to cut costs by about $1.4 billion it the
takeover is completed.
‘‘The transaction would strengthen AB InBev’s position in
key emerging regions with strong growth prospects such as
Asia, Central and South America, and Africa,’’ AB InBev said
in a statement. ‘‘These regions have hugely attractive
markets and will be critically important to the future
success of the Combined Group.’’
InBev had made multiple offers until the current one was
accepted in principle Oct. 13. The deadline to formalize the
offer was extended twice.