UPDATE: On July 29, 2016, SABMiller announced its board of directors approved Anheuser-Busch InBev's revised and final offer, essentially putting the previously paused process of integrating the two companies back into motion.
“In reaching its decision, the board has considered the best interests of the company as a whole and has taken into account all salient facts and circumstances," said SABMiller chairman, Jan du Plessis.
In addition on July 29, AB InBev received conditional approval from China's Ministry of Commerce of its acquisition of SABMiller. Final approval is contingent upon AB InBev selling SABMiller’s 49% stake in China Resources Snow Breweries Ltd. to China Resources Beer Co. Ltd., which currently owns 51% of CR Snow.
The approval, which follows similar consents in the United States, South Africa and the European Commission, essentially clears the way for AB InBev to close the deal. Final closing is expected in the fourth quarter of this year.
LONDON -- Is Anheuser-Busch InBev's drive to purchase SABMiller about to hit hard times? And is it because Anheuser-Busch InBev (AB InBev) raised its final bid?
After a generally smooth courtship that began in November 2015—all but one major market (China) have signed off on the deal from a regulatory standpoint—SABMiller and activist shareholders are reportedly playing hardball, after AB InBev announced yesterday that they were raising their offer by £1 per share. Reports suggest the increase—from £44 to £45 (about $59 U.S.)—was to make up for the diminished value of the British pound following the Brexit vote that has Britain poised to exit the European Union.
Bloomberg reported that London-based SABMiller has suspended work on integrating the brewer's operations with AB InBev.
Analysts said such reports have led to falling stock prices for AB InBev, SABMiller and Molson Coors, which is buying out SABMiller's share of the U.S. MillerCoors joint partnership and the Miller beer brand worldwide.
"Recall that when this deal was originally negotiated, SAB played hardball, having rejected each of ABI's first four offers," said analyst Vivien Azer of Cowen and Co., New York. "Of note, press reports indicated that ABI categorized this offer as 'best and final,' which creates a clear added layer of complexity given specific U.K. laws on mergers and acquisitions."
AB InBev had not commented as of press time.
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