“The world’s top two beer makers agreed Tuesday to join forces to create a company that would control nearly a third of the global market and bring together top U.S. brands Budweiser and Miller Genuine Draft,” the AP reports. “After turning down five offers, British-based brewer SABMiller accepted in principle an improved takeover bid worth 69 billion pounds ($106 billion) from Anheuser Busch InBev, which along with Budweiser makes Corona, Stella Artois and Beck’s.”
Given the scale of the deal, regulatory resistance is expected — not only in the U.S., but also in China. The report notes that the companies could be forced to sell either Budweiser or Miller to obtain approval for the merger.
But the report notes: “The markets think the deal is now very likely and SABMiller’s shares were trading right near the bid price.”
The AP adds: “AB InBev has until Oct. 28 to come up with a formal offer if U.K. regulators grant an extension to the takeover talks. In that time, the two sides will work on the terms and conditions of the takeover offer as well as the financing of the deal.”