Deadline for AB-InBev and SABMiller deal extended again

The two brewers now have until 11 November 2015 to finalise the terms of their proposed USD 104 billion transaction.

AB-InBev reached an agreement in principle on 13 October 2015 to acquire SABMiller, its closest rival. The companies had faced a deadline on 4 November 2015 to make what is called a formal offer under British takeover rules.

“SABMiller and AB-InBev have made good progress in agreeing the terms of the possible offer, which will be set out in detail in any announcement of a firm intention to make an offer,” the companies said in a news release on 4 November 2015.

One possible explanation for the delay is that AB-InBev is seeking to say something positive about the disposal of the MillerCoors stake on the day of the formal bid.

There is agreement among market observers that AB-InBev will have to sell off SABMiller’s stake in U.S. brewer MillerCoors to appease U.S. regulators. In the U.S. the two companies combined would hold a beer market share of about 70 percent.

The Wall Street Journal claims that AB-InBev is already in discussions with Molson Coors, which currently owns 42 percent of MillerCoors. Depending on Molson Coors’ negotiating skills, they may have to pay between USD 10 billion and USD 13 billion for SABMiller’s stake, according to analysts’ estimates.