AB InBev Believed to be Preparing a Takeover Offer for SABMiller

16 Sep 2014 --- Brewer Anheuser-Busch InBev, the owner of Budweiser, is reported to be in talks with banks about acquiring SABMiller, in a deal which would merge together the world’s two largest brewers.

Rumours of the tie-up between the two companies are not new but speculation has been reignited following yesterday’s news that Heineken had rejected a takeover offer from SABMiller.

AB InBev is thought to be working to line up its financing by talking to banks about raising funds, before it approaches SABMiller with a formal offer. 

SABMiller, which has been brands such as Miller Genuine Draft, Grolsch and Peroni Nastro Azzurro, recently approached Dutch brewer Heineken with an offer for the business – in a move which is thought to have been a way of protecting itself against a takeover.

Heineken rejected the takeover offer, stating that the Heineken family (which still owns half of the company) wanted to preserve the firm as “an independent company”. 

Heineken is the third largest beer producer (in volume terms) behind AB Inbev and SABMiller. The company produces Heineken beer, Amstel, Sol and Strongbow ciders. It is the largest player in the Western European market and it has expanded steadily in emerging markets such as Asia. 

The founding Heineken family owns slightly more than 50% of the company via Heineken Holding, while 12% is owned by Mexico’s FEMSA. Heineken is reported to have consulted with shareholders before rejecting the bid, stating it was “non-actionable”. 

“The Heineken family and Heineken N.V’s management are confident that the company will continue to deliver growth and shareholder value,” the company said in a statement. 

SABMiller shares have risen both as a consequence of its offer for Heineken and following speculation of ABInBev’s possible takeover bid.