- Talk about a merger between Anheuser-Busch InBev (BUD) and SABMiller (SBMRY) has picked up again this summer with many industry insiders forecasting a deal between the beer giants will be completed this year or in 2015.
- The combination would create a beer juggernaut that would account for close to 30% of global beer volume.
- Deal on: It's SABMiller's presence in Africa and China that makes it attractive to A-B with execs knowing SABMiller's stake in MillerCoors would very likely need to be sold off to make the deal fly with regulators. Some analysts note the growth channels are vibrant enough to justify the deal premium. Massive synergies on the cost side also help make the math work out.
- Deal off: SA contributor Tim McAleenan thinks the massive amount of debt that A-B would have to take on to buy SABMiller puts a deal out of reach. Buying at a market peak is also a tricky proposition.
at CNBC.com (Nov 18, 2014)