In an attempt to buy out the mega beer company, SABMiller, Anheuser-Busch InBev (AB InBev) offered a $104 Billion cash bid to the board of directors of SABMiller.
The attempt by AB InBev has been done before, and twice at that, but it seems that SABMiller is standing strong in their decision of not merging the company to AB InBev.
SABMiller Beer Company is the creator for famous beer brand Coors and Miller Lite. The company was founded in South Africa but their headquarters is located in London. SABMiller believes that AB InBev substantially undervalues their company.
"AB InBev needs SABMiller but has made opportunistic and highly conditional proposals, elements of which have been deliberately designed to be unattractive to many of our shareholders," Jan du Plessis, SABMiller Chairman, said.
Both beer manufacturers are the biggest producer of beer in the U.S. market alone, 70 percent of beers being sold in the U.S. is theirs. 45 percent of the 70 percent is AB InBev's products.
SABMiller was also rejected by another beer company in its attempt to take over Dutch base beer brewery, Heineken. This is said to have been an attempt by the Miller to hold AB InBev at bay.
AB InBev's aim on why they want to takeover SABMiller is to create the first global beer brand.
"AB InBev is disappointed that the Board of SABMiller has rejected both of these prior approaches without any meaningful engagement," the company says.
Global repercussions for the beer industry would have ultimately occur if the agreement did come to pass, especially in places were SABMiller dominates--- the U.S., Australia, India, Eastern Europe and Africa.
The beer industry is vastly becoming one of the biggest industries in the market today. Even small breweries with their very own beers are becoming fast popular.
What do you think of the attempt to create a global beer company? Is it fruitful? Leave your comment below.
