SABMiller ‘refusing to engage’ with AB Inbev

Beer giant SABMiller is “refusing to meaningfully engage” with AB Inbev over negotiations surrounding its possible takeover, claims AB’s CEO Carlos Brito.

AB Inbev CEO Carlos Brito is calling the deal a chance to make "the world's first truly global beer company" (Photo: ABInbev)

AB Inbev CEO Carlos Brito is calling the deal a chance to make “the world’s first truly global beer company” (Photo: ABInbev)

His comments come the day after his company offered SABMiller’s board £42.15 per share for the company – a deal worth £68 billion. SAB Miller turned down the offer on Wednesday afternoon (7 October), claiming it substantially undervalued” the company.

AB Inbev, the world’s largest brewer and producer of global brands like Budweiser and Stella Artois, claims the offer “represents a premium of approximately 44% to SABMiller’s closing share price of £29.34 on 14th September 2015” – the last trading day before the companies confirmed a takeover approach had been made.

Furthermore, SABMiller’s largest shareholder, Altria Group, yesterday advised the rest of the company’s board to accept AB Inbev’s offer – the third after offers of £38 and £40 per share were rejected by SABMiller.

“Altria Group, which owns 27% of SABMiller and has three representatives on the board, has publicly stated that it supports our proposal”, AB Inbev said.

Carlos Brito, CEO of AB Inbev, said, “notwithstanding our good faith efforts, the board of SABMiller has refused to meaningfully engage with us. Our proposal creates significant value for everybody.”

Calling on SABMiller’s shareholders to put pressure on its board, he continued, “How long will it be before shareholders see a value of over £42 in the absence of an offer from AB InBev? If shareholders agree that we should be in proper discussions, they should voice their views and should not allow the Board of SABMiller to frustrate this process and let this opportunity slip away.”

Analysts speculate that SABMiller is holding out for an offer of around £45 per share, which mean a deal worth roughly £75 billion.

The resulting company would generate revenues of US$64 billion (£42bn) per year, and earnings before tax and deductions of $24bn (£15.7bn), according to AB Inbev, making it one of the largest consumer product companies in the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Fine Wine Sales Executive

Roberson Wine
London, UK

Account Manager - London Trade Sales

Bancroft Wines Ltd
London, UK

Brand Manager

Elixir Distillers
Park Royal, London UK

Marketing Assistant

Speciality Brands
Park Royal, London, UK

Key Account Manager

MMI Maldives

Financial Controller

London City Bond
Barking, UK

Duty Manager

The Whisky Exchange
Great Portland Street, London

Spirits Advisor

The Whisky Exchange
London, UK

International Sales Manager

Elixir Distillers
Park Royal, London, UK

Millésime Bio 2020

27th Jan 2020

Maisons Marques et Domaines Annual Tasting

London,United Kingdom
29th Jan 2020

Austrian Wine Tasting

London,United Kingdom
3rd Feb 2020
Click to view more