SABMiller, AB InBev Shareholders Approve $100 Billion-Plus Merger
SABMiller shareholders have backed a £79bn takeover by Budweiser brewer AB InBev, clearing the way for the biggest deal in UK corporate history. Shareholders voted overwhelmingly in favour, with 95.5% of minority investors approving the deal, providing a clear victory for AB InBev, which needed at least 75% to clinch the takeover.
The deal is expected to be completed on 10 October and will create the world’s largest beer firm and global regulators have already approved the deal, which AB InBev says will create “the first truly global brewer”.
The enlarged group – which will produce almost a third of the world’s beer – will take the AB InBev name.
The deal was agreed last year, but in July AB InBev was forced to raise its offer following a fall in the pound in the wake of the Brexit vote. AB InBev increased its offer by £1 a share to £45 a share.
Cigarette maker Altria Group and the Santo Domingo family of Columbia, which together control 40% of shares at SABMiller, were excluded from the vote, following a UK court order last month, but had previously shown their support for the deal.
AB InBev Chief Executive Carlos Brito said: “We are committed to driving long-term growth and creating value for all our stakeholders.”
SABMiller counts Peroni, Pilsner Urquell, and Grolsch among its stable of brands, while AB InBev produces Stella Artois, Corona, Leffe and Beck’s.
However, to get the deal past regulators, AB InBev has already agreed to sell SABMiller’s Peroni, Grolsch and Meantime brands to Tokyo-based drinks company Asahi.
The takeover is expected to boost AB InBev’s prospects in developing markets in Africa and China, where a SABMiller joint venture produces Snow, the world’s best selling beer by volume.
The combined group will employ around 200,000 staff, but the merger is expected to create job losses. According to documents released last month, the combined group will cut 3% of its workforce across the globe.
SABMiller currently employs 69,000 people across 80 countries including Nigeria, but about 5,500 jobs are expected to be axed.
The takeover will mean that AB InBev, which is already the world’s largest brewer, will sell one in four beers worldwide.
The brewer has reportedly set aside sales worth $16.5bn (£12.7bn) in order to secure global regulatory approval, including selling SABMiller’s Peroni, Grolsch and Meantime brands to Japanese company Asahi.
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