World biggest beer producers brew up a merger deal worth £ 70bn

Miller and Bud  the world’s two biggest beer producers are set to merge after SABMiller accepted an increased takeover offer of £44-a-share, from rival Anheuser-Bush InBev.

AB InBev, the world’s largest beer maker, approached  SABMiller, the world’ second-largest beer maker, with an offer to buy the company. The acquisition of SABMiller would be the biggest in the industry’s history. The companies control total market dominance –both companies have strong sales in Latin America and SABMiller is very strong in Africa.

It would be the largest merger in the food  and drink industry to date with both companies having total market capitalisation of £159.25billion $245billion

AB  InBev’s  brands include Budweiser, Stella Artois and Corona while SABMiller produces Peroni and Grolsch.

The deal worth £70bn will see the newly-created alliance will make 30 per cent of world’s beer.

SABMiller employs 70, 000 people in more than 80 countries with a global sales of more than £16.9bn $26bn compared to AB InBev employs 155, 000 and revenues of £30.55bn, $47bn.

In a statement the boards of the two firms said  they have agreement in principle on the key terms of a possible recommended.