Sunday Times: AB InBev Could Bid $106 Bln For SAB Miller

28-Sep-2015 - Belgium

Belgian brewer Anheuser-Busch InBev NV, known as AB InBev, could make a takeover bid worth 70 billion pounds, or about $106 billion, for British brewer SABMiller Plc., the Sunday Times reported.

According to the report, the two companies have started "friendly" talks in recent days and AB InBev could make a firm offer within days, possibly by Monday morning.

A merger between the world's two biggest brewers will create a company with a market capitalization of 177 billion pounds and about 400 brands that include Foster's, Corona and Stella Artois.

In mid-September, SABMiller confirmed that Budweiser owner AB InBev has informed it intends to make a proposal to acquire SABMiller. However, the company added that it had not yet received any proposal and has no further details about the terms of any such proposal.

SABMiller also noted that by not later than October 14, AB InBev must either announce a firm intention to make an offer for the company or announce that it does not intend to make an offer.

AB InBev also confirmed separately that it has made an approach to SABMiller's board regarding a combination of the two companies. AB InBev said its intention is to work with SABMiller's Board toward a recommended transaction.

In May, shares of SABMiller rose following media reports that 3G Capital, along with billionaire Warren Buffett and Anheuser-Busch InBev, were seeking to acquire the company.

BUD closed Friday's trading at $109.51, up $2.65 or 2.48 percent on a volume of 2.45 million shares.

On the London Stock Exchange, SAB.L closed Friday's trading at 3,588.00 pence, up 84.5 pence or 2.41 percent on a volume of 2.8 million shares. (dpa)

https://www.yumda.com/en/news/1146145/sunday-times-ab-inbev-could-bid-106-bln-for-sab-miller.html