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Published: Wed, September 16, 2015
Economy | By Melissa Porter

SABMiller Gets Takeover Approach From Anheuser-Busch InBev

SABMiller Gets Takeover Approach From Anheuser-Busch InBev

Shares of Anheuser-Busch Inbev SA (NYSE:BUD) have been given a short term price target range of $107 to $163. The company received an average rating of 1.5 from 8 analysts. In taking a look at the price level and moving averages of Anheuser-Busch Inbev SA Sponsor, the equity is trading $-7.42 away or -6.49% from its 50-day moving average of $114.30.

The statement said: "AB InBev's intention is to work with SABMiller's Board toward a recommended transaction". Anheuser-Busch Inbev SA (NYSE:BUD) traded on a positive note gaining 1.64 points or 1.54% to be valued at $108.04 per share. Equities analysts forecast that Anheuser Busch Inbev SA will post $5.18 EPS for the current year.

In September, Dutch brewer Heineken rejected a takeover offer from SABMiller, which is now rumoured to be eyeing Johnnie Walker whisky and Guinness group Diageo (LON:DGE).

After years of speculation, a $250 billion tie-up between the two world's biggest brewers took a step forward today following confirmation that Anheuser-Busch InBev had made a bid approach to SABMiller.

After its shares moved, SABMiller was forced to put out a statement by the Takeover Panel, which determines the rules governing M&A in the United Kingdom It has set a deadline of 1600 GMT on October 14 for AB InBev to either make an offer or withdraw. However, it added that there was no certainty the approach would lead to an offer or an agreement.

"No proposal has yet been received and the board of SABMiller has no further details about the terms of any such proposal", the firm said. It would combine AB InBev's dominance of Latin America with SABMiller's strong presence in Africa, both fast-growing markets, as well as strengthening their position in Asia.

 

SAB, which produces beer brands including Grolsch and Peroni, announced the approach following months of talk surrounding a possible bid. Between them the two own many leading beer brands, with SABMiller's Miller Lite, Carling joining forces with AnInBev's Budweiser, Stella Artois, Corona, Bass and Boddingtons. Anheuser-Busch InBev's dedication to quality goes back to a brewing tradition of more than 600 years and the Den Hoorn brewery in Leuven, Belgium, as well as the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, U.S. since 1852.

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