USD 131bn buys you a whole of lot of beer!

Over two years have passed since the “will they won’t they” speculation started in relation to the takeover of SABMiller by Anheuser-Busch InBev and yesterday saw the formal announcement of the deal, valuing SABMiller at just over USD 131bn.

The deal brings together the world’s two largest beer makers by revenues and will be responsible for about 30 per cent of the world’s beer production.

It’s the largest deal announced so far in 2015 and also knocks last year’s USD 130bn acquisition of Verizon Wireless business from top spot in terms of the largest deal announced since post GFC days.

Not surprisingly given the offer of GBP 44 per share, a premium of over 10.6 per cent on the closing share price yesterday (the deal’s formal announcement date), SABMiller’s largest shareholders, Altria Group Inc. and BEVCO Ltd are on board, having given “irrevocable undertakings” that they would vote in favour of the deal.

This is one deal which should definitely have a well-stocked bar at the deal closing dinner when it completes!