The multinational Belgium based Brew Company Anheuser-Bush InBev today raised its offer for London based multinational competitor SABMiller amid increasing concerns of investors over exchange rate losses due to a weaker Pound.
AB InBev announced it has raised its’ offer for SABMiller to 45 Pounds per share on Tuesday morning. The former offer of 44 Pounds per share AB InBev was proclaimed in October 2015. It had become less attractive to investors since the Pound dropped in value after last month’s Brexit vote.
Terms of an alternative share-and-cash structure offered to SABMiller’s two largest shareholders have also been changed. The cash element of the deal was raised to 88 pence per share.
The new offer revalued SABMiller at around £79billion pounds, up £9 billion from last Octobers offer.
The spokesperson for AB InBev also stated that the new standing offer is final.
AB InBev is the world’s largest Brewer. It produces such well-known global brands as Budweiser, Corona and Stella Artois and international brands such as Beck’s, Hoegaarden and Leffe. The company holds about 25% of the total market share in the industry.
SABMiller is the second largest competitor in the market. The company is well-known for brands such as Fosters, Grolsch and Peroni. It is also a major bottler for Coca-Cola. SABMiller’s market share lies at around 10%.
The acquisition of its second largest competitor would considerably increase AB InBev’s competitive share in the industry and further secure its’ leading market position.