Anheuser-Busch InBev said on Wednesday that it had approached SABMiller about a potential takeover, in a deal that would combine the world’s largest beer makers into a global giant.
Such a deal, if it passed antitrust muster, would bring some of the world’s most popular beers under one roof, including Budweiser, which is made by Anheuser-Busch InBev, and Miller Lite, from SABMiller.
But any deal between the brewing giants would most likely face significant regulatory scrutiny on both sides of the Atlantic, given the breadth of brands the two companies control.
The office of Europe’s powerful antitrust chief, Margrethe Vestager, the European Union competition commissioner, had not been officially notified of the proposed deal as of Wednesday afternoon, and it had no comment on the matter.
News of the takeover approach sent SABMiller’s stock soaring by 23 percent in midday trading in London on Wednesday, raising the company’s stock market value to about $93 billion.
In a news release on Wednesday, Anheuser-Busch InBev — already the world’s largest brewer — confirmed that it had approached “SABMiller’s board of directors regarding a combination of the two companies,” and said that it intended to work with the board “toward a recommended transaction.”
SABMiller, which is based in London, said that its directors had no further details about the proposal.
“The board of SABMiller will review and respond as appropriate to any proposal which might be made,” SABMiller said in a news release on Wednesday. “There can be no certainty that an offer will be made, or as to the terms on which any offer might be made.”
SABMiller advised shareholders “to retain their shares and to take no action.”
Shares in Anheuser-Busch InBev rose about 7 percent in early afternoon trading in Brussels.
SABMiller is one of the world’s largest brewers. Its brands include Peroni Nastro Azzurro and Grolsch. The company posted revenue of $22.1 billion for the 2015 fiscal year ended in March.
Anheuser-Busch InBev is based in Leuven, Belgium. It was created by the merger of Anheuser-Busch and InBev in 2008, and its brands include Corona and Stella Artois. It posted revenue of $47 billion in 2014.
Ms. Vestager, less than a year into her job overseeing antitrust issues in Europe, has shown a willingness to take a tough line against the concentration of economic power.
This month, for example, Ms. Vestager’s office approved General Electric’s $13.5 billion takeover of the power business of Alstom of France — but only after G.E. agreed to sell some of Alstom’s European assets to Ansaldo Energia, an Italian engineering company that builds and services power plants.
And on Friday, the Nordic telecommunications companies Telenor and TeliaSonera said they had called off plans to merge their Danish businesses after they were unable to win approval from Ms. Vestager’s office.
http://www.nytimes.com/2015/09/17/b...column-region®ion=top-news&WT.nav=top-news
Such a deal, if it passed antitrust muster, would bring some of the world’s most popular beers under one roof, including Budweiser, which is made by Anheuser-Busch InBev, and Miller Lite, from SABMiller.
But any deal between the brewing giants would most likely face significant regulatory scrutiny on both sides of the Atlantic, given the breadth of brands the two companies control.
The office of Europe’s powerful antitrust chief, Margrethe Vestager, the European Union competition commissioner, had not been officially notified of the proposed deal as of Wednesday afternoon, and it had no comment on the matter.
News of the takeover approach sent SABMiller’s stock soaring by 23 percent in midday trading in London on Wednesday, raising the company’s stock market value to about $93 billion.
In a news release on Wednesday, Anheuser-Busch InBev — already the world’s largest brewer — confirmed that it had approached “SABMiller’s board of directors regarding a combination of the two companies,” and said that it intended to work with the board “toward a recommended transaction.”
SABMiller, which is based in London, said that its directors had no further details about the proposal.
“The board of SABMiller will review and respond as appropriate to any proposal which might be made,” SABMiller said in a news release on Wednesday. “There can be no certainty that an offer will be made, or as to the terms on which any offer might be made.”
SABMiller advised shareholders “to retain their shares and to take no action.”
Shares in Anheuser-Busch InBev rose about 7 percent in early afternoon trading in Brussels.
SABMiller is one of the world’s largest brewers. Its brands include Peroni Nastro Azzurro and Grolsch. The company posted revenue of $22.1 billion for the 2015 fiscal year ended in March.
Anheuser-Busch InBev is based in Leuven, Belgium. It was created by the merger of Anheuser-Busch and InBev in 2008, and its brands include Corona and Stella Artois. It posted revenue of $47 billion in 2014.
Ms. Vestager, less than a year into her job overseeing antitrust issues in Europe, has shown a willingness to take a tough line against the concentration of economic power.
This month, for example, Ms. Vestager’s office approved General Electric’s $13.5 billion takeover of the power business of Alstom of France — but only after G.E. agreed to sell some of Alstom’s European assets to Ansaldo Energia, an Italian engineering company that builds and services power plants.
And on Friday, the Nordic telecommunications companies Telenor and TeliaSonera said they had called off plans to merge their Danish businesses after they were unable to win approval from Ms. Vestager’s office.
http://www.nytimes.com/2015/09/17/b...column-region®ion=top-news&WT.nav=top-news
