Big Beer News: Budweiser and Miller Parent Companies May Agree to Merge in $104 Billion Deal

If you read the news frequently, you may have noticed this week that Anheuser-Busch InBev, the world’s largest beer company, and SABMiller, it’s top competitor, will most likely, join together to merge into one gigantic beer company. Three offers were recently put on the table from AB InBev, however, SABMiller rejected those offers, citing the offers were too low. The brands did agree “in principle”, that AB InBev’s fifth offer to SABMiller would be accepted.

“The Board of SABMiller has indicated to AB InBev that it would be prepared unanimously to recommend the all-cash offer,” the companies stated in a release. The release also noted that “AB InBev would agree to a “best efforts” commitment to obtain any regulatory clearances prior to the deal. Should AB InBev fail to receive regulatory approval it will pay SABMiller a $3 billion fee.”

This is not quite a formal offer, and AB InBev has been admitted an extension from British regulators and now have until October 28th to make the offer. The companies said there “can be no certainty a formal offer will be made, it seems likely to deal will come to fruition,” they stated. The question now remains: How will this merger affect marketers? Both of the huge beer companies have recently acquired new agencies, including MillerCoors, earlier this month, and Budweiser signed up with Wieden + Kennedy this past July.

“Combined, AB InBev and SABMiller would house some of the world’s most recognizable beer brands under the same roof including AB InBev’s Budweiser, Corona and Stella Artois, and SABMiller’s Miller Lite, Peroni Nastro Azzurro and Grolsch,” stated AdWeek.

Do you think this merger will draw scrutiny from regulators worried about how it might hurt competition & lead to higher prices for shoppers? Share your thoughts with us on Facebook.

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