The world’s largest beer brewer, Anheuser-Busch InBev has approached the world’s second largest beer brewer, SABMiller to consider a takeover.
A statement issued by SABMiller confirm reports, saying “the board of SABMiller notes the recent press speculation and confirms that Anheuser-Busch InBev has informed SABMiller that it intends to make a proposal to acquire SABMiller. No proposal has yet been received and the Board of SABMiller has no further details about the terms of any such proposal. The board of SABMiller will review and respond as appropriate to any proposal which might be made.”
Similarly, AB InBev stated ““AB InBev confirms that it has made an approach to SABMiller’s board of directors regarding a combination of the two companies.”
If the takeover is successful, the two brewers would create a beer giant valued at $250 billion. The companies would combine their products, brining beers like Budweiser, Stella Artois, Corona and Leffe (AB InBev) and Grolsch, Peroni, Castle and Fosters (SABMiller) together under one company.
Some are seeing this as a move to protect large beer manufactures against the craft beer revolution. “As the craft movement is coming of age and solidifies its position as a key disruption force within beer and the entire alcohol industry, corporate consolidation can perhaps provide some last drops of stock market intoxication,” said Spiros Malandrakis, an analyst at Euromonitor International.
Meanwhile, even before the rumours were completely confirmed, share prices in both companies rose magnificently.
Should the deal work out, the beer brands will be able to aggressively expand their presence world over.