Anheuser-Busch InBev announced Wednesday it had reached a final agreement to purchase SABMiller for approximately $107.9 billion, creating a behemoth that will control nearly one third of the world’s beer supply. AB InBev floated the idea it was targeting SABMiller for a possible takeover in September. The companies reached an agreement in principle on October 13, though the deadline for a formal offer was extended twice.
As part of the deal, SABMiller agreed to sell Molson Coors its 58 percent economic interest and 50 percent voting interest in MillerCoors for $12 billion. Under the agreement, Molson Coors will acquire full ownership of the Miller brand portfolio outside the US and retain the rights to all MillerCoors brands in the US as well as the rights to the Miller brand name. AB InBev and SABMiller hope the transaction will help secure regulatory approval in the US, proving the new company doesn’t have a monopoly on the nation’s beer market. US Sen. Mike Lee, R-Utah, Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights chairman, says the committee will examine how the proposed merger will impact consumers and competition across the country.