Takeover could create one of world’s biggest drinks companies as popular beer brands such as Stella, Budweiser, Fosters and Peroni end up under one roof

This article is more than 5 years old

This article is more than 5 years old

Anheuser-Busch InBev, the owner of Budweiser and Stella Artois, has approached rival SABMiller about a takeover that could create one of the world’s biggest companies.

Shares in SABMiller soared by more than 22% following the announcement, while AB InBev rose 11%.

SABMiller revealed in a stock market statement that AB InBev had informed the drinks company it intends to make a takeover proposal, although no bid has yet been received.



ABInBev confirmed the approach and said it wanted to work with SABMiller on a deal, rather than pursuing a hostile takeover.

A combination of the brewers would create a company with a market value of about $250bn (£162bn). It would bring together Stella Artois and Budweiser with SABMiller’s brands, including Peroni, Grolsch and British craft beer Meantime.

The brewery industry has been awash with speculation about a major deal and City sources have long touted the prospect of AB InBev and SABMiller combining. AB InBev’s largest shareholder is 3G Capital, the Brazilian private equity group, which has snapped up major food companies including Heinz and has a track record of major deals in the beer industry.

SABMiller is listed in London and South Africa and employs 69,000 people around the world. AB InBev is listed in Brussels and New York.



In a statement, SABMiller said: “The board of SABMiller notes the recent press speculation and confirms that Anheuser-Busch InBev has informed SABMiller that it intends to make a proposal to acquire SABMiller.

“No proposal has yet been received and the Board of SABMiller has no further details about the terms of any such proposal. The board of SABMiller will review and respond as appropriate to any proposal which might be made.”

In response, AB InBev said: “AB InBev confirms that it has made an approach to SABMiller’s board of directors regarding a combination of the two companies,” it said. “AB InBev’s intention is to work with SABMiller’s board toward a recommended transaction.”

Spiros Malandrakis, analyst at Euromonitor International, said the companies were being forced to act in the face of the growing popularity of craft beers.

He said: “As the craft movement is coming of age and solidifies its position as a key disruption force within beer and the entire alcohol industry, corporate consolidation can perhaps provide some last drops of stock market intoxication.”

AB InBev’s brands

Stella Artois

Budweiser

Corona

Brahma

Boddingtons

Leffe

Hoegaarden

Lowenbrau

Bass



SABMiller’s brands

Grolsch

Peroni

FostersMillerMeantime

Lech

Blue Moon

Castle