British court rules on InBev’s bid to become world’s largest brewer

A British court has ruled that the two main shareholders of London-based brewer SABMiller may be treated as a separate voting class in approving a takeover by AB InBev to form the world’s largest brewing concern, based in Leuven. The ruling makes it easier for approval to be blocked.

The two shareholders – the Altria Group and Bevco, owned by the Santo Domingo family – were offered a combination cash and equity package by InBev, while other SABMiller shareholders were offered only cash. Since the initial offer, however, the value of the pound has fallen, while the value of InBev shares, which are denominated in euros, remains steady. InBev recently raised the offer from £44 to £45 to make up for the fall.

The decision to treat the two blocs as separate now means it would take only 15% of shareholders to block the deal when it comes up for a vote on 28 September, instead of 25%. Both major shareholders have committed to approving the takeover, but their collective weight is now less than it was.

Photo courtesy SABMiller