Published Date : Oct 08, 2015
Budweiser and Miller Lite that have been contending for the heart of beer drinkers for many years may finally merge operation. Anheuser-Busch InBev, the company that owns Corona and Budweiser commented recently that it has raised offer for SABMiller, which is the owner of Peroni and Miller Lite for about 42.15 per share or almost GBP 68 bn in total value.
In the bid, Anheuser-Busch InBev has unveiled a detailed plan why it thinks the potential merger would create a global beer giant that may surpass all consumer goods company with the exception of Nestle and Procter and Gamble in size.
The merger of SABMiller and AB InBev would result into a truly global brewer to be positioned as one of the leading consumer products companies in the world. This was commented by AB InBev in a notice that was shared with shareholders that gave details about the revised unsolicited bid.
As estimated by AB InBev, the merger is estimated to create a company with revenues of US$ 64 bn and EBITDA worth US$ 24 bn. This will surpass Coca-Cola in sales and will roughly match revenues of PepsiCo and Unilever. As per the estimates, only Procter & Gamble and Nestle would record significantly higher sales than the merged company.
The merger is also slated to expand AB InBev’s presence in emerging markets, mainly in Africa where the GDP is expected to grow steadfast in the coming years. Seeing the largely complementary geographical presence and brand portfolios of SABMiller and AB InBev, the merged company would have operations in practically every major beer market in the world. This includes main emerging nations that have strong growth prospects such as Asia, Africa, and South and Central America.
Earlier in September, AB InBev, the owner of non-beer brands such as Becks, Corona, and Stella Artois had disclosed about approaching SAB Miller for a merger.