Brexit vote costs AB InBev in SABMiller bid

AB InBev, the biggest brewer in the world, has been forced to raise its bid for the number two, SABMiller, thanks to the fall in value of the British pound following the decision to leave the EU. InBev was offering £44 per share, which has now increased to £45, valuing SABMiller at £79 billion (€93.8 billion).

SABMiller was originally a South African company, but is now based in London, which is why the bid was denominated in sterling. The increase will also apply pro rata to those shareholders who elected to take part of the price in cash and part in AB InBev shares.

The call for an increase following the fall of the pound was led by major institutional shareholders, who had more to lose. InBev stressed that the latest bid will be the last. Once the merger is complete, Dutch brewery Heineken, which also owns Alken-Maes in Belgium, will become the second biggest in the world.

Photo courtesy Toerisme Leuven