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Cheers! InBev gets its brewsLondon AFPThe West AustralianWed, 14 October 2015 3:52AMCamera IconMerged: Tyskie (SAB), Budweiser (InBev), Peroni (SAB), Becks (InBev) and Corona (Inbev).

Credit: The West AustralianShare to FacebookShare to XEmail UsCopy the Link British brewer SABMiller has announced it has agreed to a takeover by Anheuser-Busch InBev, the world’s biggest

beer producer, in a deal worth about $US109 billion ($148.1 billion).

Belgian-Brazilian group AB InBev, the maker of Budweiser and Stella Artois lagers, struck a deal with the maker of Foster’s and Grolsch at the fifth time asking.

Including debt, the cost of buying SABMiller is around $US117 billion, making it the world’s third-biggest takeover after two mega mergers across the telecoms sector.

“The boards of AB InBev and SABMiller announce that they have reached agreement in principle on the key terms of a possible recommended offer”, priced at an improved £44 per SABMiller share,

the British target said in a statement.

The terms of last night’s agreed deal is higher than a fourth bid tabled by AB InBev on Monday that was worth about £43.50 a share.

At £44 a share, the new all-cash offer is a premium of about 50 per cent to SABMiller’s closing share price on September 14, or final business day prior to renewed speculation of an approach

by AB InBev.

SABMiller, the world’s second-biggest brewer, claimed the previous bids undervalued the company, upping the pressure ahead of today’s regulatory deadline by which time its rival would have

had to make an official offer or walk away for at least six months.

Dealogic rates the SABMiller takeover as the third-biggest in the world.

The global beer sector is looking at consolidation faced with the increased popularity of so-called craft beers that are brewed by smaller independent firms.

AB InBev, which also brews Corona, recently reported a sharp fall in second-quarter profits owing to weak economic conditions in several markets.

To firm up its business, SABMiller earlier this year bought London-based craft beer company Meantime for an undisclosed sum, as big players in a saturated beer market eye opportunities in

the fast-growing segment.

Elsewhere, Dutch beer giant Heineken has bought half of US-based beer maker Lagunitas, hoping to cash in on the global rocketing popularity of craft beers.

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