The two largest beverage-makers in the world may soon join forces to essentially monopolize the global beer market.
Anheuser-Busch InBev has approached rival SABMiller plc and offered to take over the company. Together, they would control one-third of all the beer produced in the world, including 70 per cent of the U.S. beer market.
A merger between the two companies would result in a $275 billion market capitalization, making the new enterprise the 9th most valuable corporation in the world.
No specific offer has been made yet, but SABMiller seems open to the move and intends to keep the dialogue friendly.
“AB InBev’s intention is to work with SABMiller’s Board toward a recommended transaction. There can be no certainty that this approach will result in an offer or agreement, or as to the terms of any such agreement,” said a statement about the potential deal.
Given the complexities of the merger, and pending anti-trust issues almost guaranteed to follow, it may take up to a year for the terms to be settled.
SABMiller’s shares skyrocketed in the wake of the news, as did the number of people pledging allegiance to a craft beer-only lifestyle.