A ‘Truly Global Beer Company’ (Infographic)

A look at the cash behind the creation of a brewery behemoth
beer graphic

With a major antitrust hurdle out of the way, the two largest beer companies in the world—Anheuser-Busch InBev and SAB Miller—are moving forward with plans to merge.

Strategic thinking, not to mention billions upon billions of dollars, is propelling the deal forward.

Rather than jump through regulatory hoops after an agreement was reached, AB InBev was proactive, requesting multiple deadline extensions for the proposal as it worked out the future of SABMiller’s share of U.S. venture MillerCoors with Molson Coors Brewing. Molson Coors has agreed to buy the 58% share of MillerCoors it doesn’t already own, giving it rights to all of MillerCoors’ current beer brands in the United States and ownership of the Miller beer brand family globally.

That leaves most of the rest of the world for “Newco,” the yet-to-be-named new company that AB InBev and SAB Miller will become.

“This combination will create the world’s fi rst truly global beer company, and one of the world’s largest consumer products companies,” AB InBev CEO Carlos Brito said in a release announcing the formal bid. “This provides more opportunities for consumers globally to taste and enjoy some of the best beers in the world.”

In general terms of the deal, agreed to by the boards of both Anheuser-Busch InBev SA/NV and SABMiller plc, each SABMiller shareholder will receive £44 (about $67 U.S.) in cash per share, although “partial share alternatives” are available as well, allowing shareholders who want to be owners in the new company to retain part of their investment.