The world's top brewer, Belgian-Brazilian behemoth Anheuser-Busch InBev has clinched a $A172.28 billion deal for rival, SABMiller, in what is now the third biggest takeover in global corporate history.
The deal will bring together InBev's top lagers like Beck's, Budweiser and Stella Artois, with SABMiller brands Foster's, Grolsch and Peroni.
According to analysts Euromonitor International, “AB InBev’s acquisition of SABMiller is the natural conclusion of over a decade of consolidation within the brewing industry.”
The new company will account for 29 per cent of the global 198 billion litre beer market.
This will make it more than three times bigger than its nearest rival, Heineken, which has 9 per cent of the global beer market.
“The deal is a culmination of over a decade of mass consolidation which has seen the top five’s share of global beer volumes rise from 38 per cent in 2005 to 56 per cent following this deal in a category that has grown by 23 per cent over the same period.”
“With little geographic overlap between the two companies, it is of little surprise the deal has been agreed and the deal will also have limited anti-trust issues.” Jeremy Cunnington Senior Alcoholic Drinks Analyst at Euromonitor International
According to Euromonitor, A-B InBev will have the following presence regionally:
· Number 3 in Asia-Pacific with 12 per cent of the region’s 71 billion litre volumes. Five and one percentage points respectively behind Chinese giants China Resources and Tsingtao.
· Number 1 Player in Australasia with 40 per cent of the region’s 2 billion litre volumes, or seven percentage points ahead of Kirin.
However in order to gain US regulatory approval, the enlarged brewer will now have to divest SABMiller’s US operations to Molson Coors, along with the interest in the SABMiller joint venture with China Resources.