By Paul Jarvis and Thomas Buckley
(Bloomberg) — Anheuser-Busch InBev NV submitted its formal offer to buy SABMiller Plc for about $107 billion as the target agreed to sell its stake in its U.S. joint venture to pave the way for the deal.
The Budweiser maker will pay 44 pounds a share in cash for a majority of the stock, the companies said, confirming a price accord announced on Oct. 13. The deal will lead to annual pre- tax cost synergies of at least $1.4 billion per annum, they said. Molson Coors Brewing Co. will acquire SABMiller’s 58 percent stake in MillerCoors LLC for $12 billion, giving it full control of a business that makes Coors Light and Blue Moon.
The takeover of SABMiller will give AB InBev beer brands such as Peroni and Grolsch and create a company controlling of about half of the industry’s profit – provided it gets past antitrust regulators. The companies reached a tentative agreement last month after weeks of haggling over the price. The Belgian suitor must pay a fee of $3 billion if it fails to get the necessary approvals.
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“We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders,” AB InBev Chief Executive Officer Carlos Brito said in the statement.
SABMiller shares rose 1.5 percent to 4,034 pence at 8:04 a.m. in London. The price of the cash offer is 50 percent above the closing value on Sept. 14, the day before takeover speculation resurfaced. AB InBev gained 1 percent to 112.3 euros in Brussels.
