LONDON, Nov. 11 (UPI) -- Brewer Anheuser-Busch InBev on Wednesday announced a massive $105 billion deal to acquire Belgian rival SABMiller, creating one of the world's largest beer companies.
Pending regulatory approval, the combined company will be the world's largest producer of consumer staples, with an estimated $25 billion in pre-tax revenue. It will have the No. 1 or No. 2 in 24 of the 30 largest global markets for beer.
AB InBev found the deal desirable because SABMiller is particularly strong in growing markets.
The two companies announced an agreement in principle on Oct. 13 after negotiating for months.
"SABMiller has an unmatched footprint in fast-growing developing markets, underpinned by our portfolio of iconic national and global brands," said SABMiller chairman Jan du Plessis in a statement.
To get regulatory approval in the United States, SABMiller is expected to sell its 58 percent share of MillerCoors to its partner in the venture, Molson Coors brewing Company. The deal between AB InBev and SABMiller has the blessing of SABMiller's two largest shareholders: Altria, the U.S. tobacco company, and the Santo Domingo family of Colombia, who agreed to receive restricted shares in the new company and less cash than the $66.49 per share AB InBev offered to buy SABMiller.
The combined company will have about 29 percent of the world's total beer market, after some beer brands are sold to obtain the consent of regulators. It will be three times larger than Heineken, its nearest competitor, the research firm Euromonitor International estimates.
