Oct 22, 2017 Last Updated 8:31 AM, Oct 20, 2017

Budweiser producer to buy SABMiller

budweiserABN – South African beer manufacturer SABMiller has agreed to a takeover by Belgian brewer Anheuser-Busch InBev for an incredible US$106 billion,

making it the brewing industry’s largest-ever deal.

If approved, the deal will merge the world’s two biggest brewers, who collectively control half of the industry’s profit and produce one in every three beers sold.

Shareholders and regulators are yet to approve the deal, with AB InBev liable to pay a $3 billion fine if it fails to get these approvals.

SABMiller produces beer brands including Castle, Carling, Mosi, Trophy, Kilimanjaro, Nile Gold and Reds, and makes a third of its revenue within the 12 African countries it serves.

AB InBev produces Budweiser among other brands and sells its beers predominantly in North and South America, where sales have been declining recently as independent craft beers have gained in popularity.

Buying SABMiller will diversify AB InBev’s portfolio and provide access to the world’s fastest-growing beer market, in which there are 65 million Africans due to reach the legal drinking age by 2023.

@ABNetworkOnline

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