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World's Two Largest Brewers Agree to Merger

Published by: Dave Simmons on 11th Nov 2015 | View all blogs by Dave Simmons

World's Two Largest Brewers Agree to Merger

AB InBev revealed Wednesday it has agreed to pay $107 billion to acquire SABMiller in a deal that would merge the world's two largest beer makers. The combined company will produce nearly a third of the world's beer, causing antitrust concerns to regulators, especially in the US market. To ease those concerns, SABMiller has agreed to sell off its controlling stake in a venture with Molson Coors, including the rights to the Miller brand name. Molson Coors will pay $12 billion for the SABMiller stake, and will assume full control of daily operations of Miller Lite, Miller High Life, and other brands. A name for the combined company has not yet been determined.

Economists estimate that the AB InBev merger with SABMiller will give the new company about 29 percent of the world's annual beer market of nearly 200 billion liters. The company will be more than three times larger than its biggest rival, Heineken, which controls about 9 percent of the market.

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