After numerous attempts by Budweiser beer brewers, Mega Company Anhueser Busch InBev, SABMiller has finally agreed to merge and become the biggest beer company there is.
AB InBev has been courting SABMiller with the idea of merging numerous months ago, and attempted to persuade them four time before they agreed. Just last month AB InBev offered $104 billion to SABMiller for the merge.
SABMiller is the creator of beers Coors and Miller Light. During that last time AB InBev gave an offer the SABMiller Company felt that they were undervalued and thus they did not accept the offer.
A quote from by SABMiller after they rejected AB InBev's $104 billion offer pointed out how the company felt about a merge, "SABMiller is the crown jewel of the global brewing industry, uniquely positioned to continue to generate decades of standalone future volume and value growth for all SABMiller shareholders from highly attractive markets," SABMiller Chairman Jan du Plessis.
But now with an offer of $106 billion SABMiller finally gave up and accepted it. The shares are valued at $67 each, $9 more than the last offers.
The size of the merger would dwarf the Heineken Brewery Facility, which is the second biggest in the industry and might spur new regulation in countries such as the United States and China.
The main concern of many about the merger is the fact that it may cause fewer choices of beer for consumers and could stifle the competition.
There is no knowing what the future will hold with this merger, but experts can tell that the SABMiller-AB InBev merger will give the brewers more power to negotiate deals with suppliers, distributors, and retailers.
SABMiller employs 69,000 people in 83 countries. AB InBev has 155,000 workers in 25 countries. The deal's success would also depend on the combined companies' ability to make savings through job cuts.
