TBL parent firm agrees takeover of $109 billion

London. British brewer SABMiller, which owns a controlling stake in Tanzania Breweries Limited (TBL), announced yesterday that it had finally agreed a takeover by Anheuser-Busch InBev — the world’s biggest beer producer -- for about $109 billion.

Including debt, the cost of buying SABMiller is around $117 billion (£77 billion, 103 billion euros), making it the world’s third biggest takeover after two mega mergers across the telecoms sector.

Belgian-Brazilian group AB InBev, the maker of Budweiser and Stella Artois lagers, struck a deal with the producer of Foster’s and Grolsch at the fifth time of asking.

Shares in SABMiller, the world’s second-largest brewer, surged on the announcement, with markets expecting a deal to go through despite regulatory hurdles.

“The boards of AB InBev and SABMiller announce that they have reached agreement in principle on the key terms of a possible recommended offer,” the British group said in a statement.

SABMiller added that its board “would be prepared unanimously to recommend the all-cash offer of £44.00 per SABMiller share” to its shareholders.

AB InBev has until October 28 to make the bid formal.

The terms of Tuesday’s deal is meanwhile higher than a fourth bid tabled by AB InBev on Monday that was worth about £43.50 a share.

At £44 a share, the new all-cash offer is a premium of about 50 per cent to SABMiller’s closing share price on September 14, or final business day prior to renewed speculation of an approach by AB InBev. (AFP)