ABInBev and SABMiller reach an agreement
On Wednesday 11 November, Anheuser-Busch InBev (ABI or AB InBev) made a formal offer of $107 billion to buy SABMiller. This seals the long-awaited deal that will see the world's two largest brewers combine, and in so doing, control around half the industry's profit.
- Read our previous report on the deal: AB InBev makes third offer to buy SABMiller.
- Read our report on MillerCoors CFO, Gavin Hattersley, being named CEO.
According to international law firm Allen & Overy (A&O), ABI raised a loan of $75 billion to back the acquisition. According to a statement from the law firm, it advised lenders including Banco Santander, Bank of America Corporation, Bank of Tokyo-Mitsubishi UFJ, Barclays, BNP Paribas, and Deutsche Bank.
In a statement, partner at A&O, Nicholas Clark, said:
"AB InBev's ability to raise $75 billion in the loan markets in the space of a few weeks shows that banks are still willing to support top-class borrowers in record amounts, despite the current era of increased regulatory and capital costs. This is the largest commercial loan in the history of the global loan markets, far surpassing pre-crisis values.
AB InBev CEO, Carlos Brito, said in the statement:
"We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders."