SABMiller rejects AB Inbev takeover bid

The London-based SABMiller, the second-largest brewer in the world, has refused a bid worth €92 billion from its larger rival, Leuven-based AB InBev. SAB said the bid “seriously undervalues” the company.

News of a takeover bid for SAB has been circulating since mid-September, when it was reported that SAB had a market value of €80 billion.

The company was trading in London this week at around £37 (€50) a share. AB InBev revealed it has now made three bids, two exploratory bids before the latest official one at £42.15, or about €57 a share.

That would put the value of SAB at €92 billion. The deal was bound to be the biggest the brewing world has ever seen, more than twice the value of the previous record – the €42 billion paid by InBev for Anheuser Busch of the US.

Despite the refusal, the main shareholders of SAB – American cigarette company Altria and the Santo Domingo family of Colombia – remain interested in a takeover deal. Such a move, would “create substantial value for SABMiller shareholders,” said Altria in a statement.

The company called on the SAB board to hold “prompt and constructive” talks with AB InBev.

Should the acquisition go ahead, the new company would represent about 30% of the world’s beer market, with brands including Jupiler, Stella Artois and Budweiser on AB InBev’s side, and Grolsch, Foster’s and Miller on the side of SAB.

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