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AB InBev Agrees to buy SABMiller In Principle

SABMiller AB InBev Merger Logo

UPDATE – 11/11/2015
AB InBev and SABMiller have reached a formal acquisition agreement, with the Belgian based King of Beers acquiring SABMiller to the tune of $106 billion, approximately. The deal, dubbed MegaBrew will see AB InBev divest its shares of MillerCoors to address concerns of monopoly, although the deal will still give the mega-company control of roughly one-third of the world's beer market.

AB InBev will offer $47.25 for each SABMiller share, and annual revenue generation for the company is estimated to be $64 billion, or enough to take the entire family to Olive Garden.
 

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According to a press release from SABMiller, the world's second-largest beer producer has agreed in principle to a deal with the world's largest brewery, AB InBev. The deal is worth a reported $106 billion.

After rebuffing AB InBev's advances on at least four prior occasions due to timing and price devaluation, amongst other reasons, SABMiller capitulated late last night.

The deal would be one of the largest mergers in history, not just within the industry, but numerous hurdles remain for this deal to get finalized. Regulatory concerns loom large, as this combination would basically be making one-third of all beer that's consumed in the world – a near-monopoly that many regulators, specifically in America, will look at closely before this deal is done.

The release from SABMiller is here. Check back for updates, as this is still a developing story.