BRUSSELS — The world's top two beer makers agreed Tuesday to join forces to create a company that would control nearly a third of the global market and threaten to dominate the U.S. by bringing together Budweiser and Miller Genuine Draft.
After turning down five offers, British-based brewer SABMiller accepted in principle an improved takeover bid worth $106 billion from Anheuser Busch InBev, which along with Budweiser makes Corona, Stella Artois and Beck's. Aside from the Miller beers, SABMiller owns Peroni, Grolsch and Milwaukee's Best among its 200 or so brands.
The sheer scale of the deal means it will likely run into resistance from regulators, notably in the U.S. and China, amid concerns it could stifle competition and decrease choice for consumers. In the U.S., the Miller stable of beers are widely expected to have to be sold in the event of a deal.
The appeal of the tie-up for the companies is that they complement one another. AB InBev is seeking to add to its strong position in the Americas and Europe with SABMiller's presence in fast-growing markets in Africa and Oceania.
With combined sales of over $70 billion a year, the companies would also be in a stronger position to face the rising influence of craft beer.
See Wednesday's Arkansas Democrat-Gazette for full details.