AB InBev wooed SABMiller shareholder
Anheuser-Busch InBev reached out to SABMiller’s largest shareholder, Altria, before it announced it plans to make a takeover proposal.
|||Belgium - Anheuser-Busch InBev reached out to SABMiller’s largest shareholder Altria Group before it announced on Wednesday that it plans to make a takeover proposal to its smaller rival, according to people familiar with the matter.
Executives from the world’s largest brewer got in touch with Altria, which owns about 27 percent of SABMiller, to sound out whether it would support a potential offer, the people said, asking not to be identified because the discussions are private.
Altria has signaled it is open to considering a proposal, depending on the terms, the people said. AB InBev is keen to reach a friendly deal, one of the people said.
The Belgian brewer is close to lining up a group of banks to help finance the transaction, which would create a brewing giant with combined annual sales of about $81 billion, two of the people said. Banks are willing to offer more than $50 billion of debt for the acquisition, one of the people said. A takeover proposal may come as soon as a financing package is in place, they said.
Spokesmen for AB InBev and SABMiller declined to comment. A representative for Altria didn’t respond to requests for comment.
SABMiller is also open to discussing a potential offer from AB InBev, people familiar with the matter said on Wednesday. The London-listed brewer would consider an offer that provides good value for shareholders as its options for consolidation narrow in a stagnant brewing industry, the people said.
A combination would help both brewers combat a slowdown in developed markets like the US and Europe, where drinkers are seeking out craft brews or wine and spirits instead of beer.
AB InBev would gain access to over $7 billion of revenue in Africa with brands including Castle lager and almost $4 billion of sales in Asia if it bought SABMiller, reducing the beer giant’s dependence on the US, Mexico and Brazil.
BLOOMBERG