Anheuser-Busch InBev and SABMiller: Would Strategic Benefits come easily with “Newco”?

Author :

David Zidel & Stephanie Townsend

Pages :

42

Product Type :

Case

Reference # :

WBS-2016-04

Teaching Note :

Not available

Institute:

Wits Business School - University of the Witwatersrand

Setting:

Belgium

Year:

2015

Keywords:

Finance

Summary/Abstract:

On 11 November 2015, Carlos Brito, chief executive of global leading beer brewer Anheuser-Busch InBev (AB InBev), presented his final offer of US$105.5 billion (£69.8 or £44 pounds per share), to acquire its rival, SABMiller, which the company accepted. The acquisition process had started in September and just over a month later, on 13 October, SABMiller had accepted the offer in principle, but had certain requirements before it would accept. Such a massive transaction could well present hurdles – one being anti-competitive issues. But would this acquisition deliver synergies soon enough for InBev, Brito wondered?