SAB buys Miller for $5.6 bn ...
... and becomes the world’s second largest brewer. So the full headline should have read. The long wait is over. What pundits have known for weeks, has finally been confirmed. At the end of May Miller’s parent company, cigarette-maker Philip Morris Cos. or Altrai as the company is called these days, agreed to sell its brewing operation for US$5.6 billion.
This is the first time, the self-professed emerging markets specialist SAB has bought into a First World market. While SAB has spent US$2 billion in the past two years on takeovers that have increased its sales by 20 per cent, the company’s expansion was in countries such as Poland, India, China and Honduras where beer consumption has been on the increase.5 times EV/EBITDA. In the end, SAB paid US$600 million more.0x.6 per cent....
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