17 September 2015 07:39

Anheuser-Busch InBev and SABMiller to Merge?

Anheuser-Busch InBev (AB InBev) has confirmed that it has made an approach to SABMiller's Board of Directors regarding a combination of the two companies. AB InBev's intention is to work with SABMiller's Board toward a recommended transaction. There is no certainty that this approach will result in an offer or agreement, or as to the terms of any such agreement. Further details are expected in the coming weeks.

In accordance with Rule 2.6(a) of the City Code on Takeovers and Mergers (the "Code"), AB InBev must, by not later than 5.00 p.m. on Wednesday 14 October, 2015, either announce a firm intention to make an offer for SABMiller or not. In other words, AB InBev has been given a month to shit or get off the pot.

AB InBev confirms that, as of yesterday, it has 1,608,242,156 ordinary shares without face value in issue and admitted to trading on Euronext Brussels (ISIN: BE0003793107). AB InBev has an American Depositary Receipts ("ADR") programme for which The Bank of New York Mellon acts as depositary. Each ADR share represents one AB InBev ordinary share. The ADRs are traded on the New York Stock Exchange (ISIN: US03524A1088).

Needless to say, this announcement has seen SABMiller shares explode like shaken can of Castle, climbing as much as 23% at one point yesterday. This deal is certainly one to watch. Not only will it have a major effect on power dynamics within the global beer market, but it will (and already has) affect the South African economy.

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