Coca-Cola (NYSE:KO) has agreed to buy AB InBev's (NYSE:BUD) 54.5% stake in Coca-Cola Beverages Africa for $3.15B and several of its bottling operations across Africa and Central America for an undisclosed amount.
The beverage giant plans to hold all of the interests temporarily until they can be refranchised to other partners.
Japan's Asahi Group (OTC:ASBRY) has agreed to buy five eastern European beer brands from AB InBev (NYSE:BUD) for about ¥900B ($7.8B), as the Budweiser maker looks to offload former SABMiller (OTCPK:SBMRY) businesses to win approval for their MegaBrew merger.
The deal will give bigger international heft to Asahi, which is one of the top beer makers in its home market but only a small player globally.
Anheuser-Busch InBev (BUD +1.2%) has at least six first-round bids in hands for the sale of a group of European beers which include Czech brand Pilsner Urquell and Polish labels Tyskie and Lech, according to Reuters.
The company is offloading the assets as part of the regulatory requirement for its merger with SABMiller.
Constellations Brands (NYSE:STZ) announces it acquired Obregon Brewery from Grupo Modelo for $600M.
The deal has to be approved by the DOJ before closing.
The plant located in Mexico is expected to have 4M hectoliters of production capacity with minimal investment.
"We believe this is the right strategy to provide near-term capacity and greater flexibility to support our growth and innovation plans, while allowing for the buildout of our Mexicali brewery over an extended time period," says Constellation CEO Rob Sands.
Grupo Modelo is a subsidiary of Anheuser-Busch InBev (NYSE:BUD).
It don't take long after shareholders at Anheuser-Busch (BUD -1.4%) and SABMiller (OTCPK:SBMRY) formally agreed to a mega-merger before talk of what's the next M&A move cropped up with plenty of heavy hitters holding shares.
Both HSBC and Stifel Nicolaus think Coca-Coca (KO -0.1%) will be the next target for the beer behemoth, perhaps even sooner than some may think. The synergy math could be stunning if all the complications of an acquisition are worked out.
On the bottling side, the integration of SABMiller into A-B has plenty of implications for the sector, even more so if speculation over a Coca-Cola deal escalates.
Shareholders holding sizable positions in SABMiller (OTCPK:SBMRY) are in the spotlight as the company's meeting on September 26 approaches. The vote on the Anheuser-Busch InBev (NYSE:BUD) merger will be the main event of the SABMiller gathering.
Large institutional shareholders such as BlackRock and State Street Global Advisers are seen approving the deal because they also own interests in BUD and Molson Coors, but the hedge fund vote is harder to forecast. Some hedgies may gamble and skip out on voting by declining to convert their options and derivatives to save on the exercise tax.
Another reason that the merger vote may be closer than anticipated is that both Altria (NYSE:MO) and the Santo Domingo family are excluded from having a say.
Anheuser-Busch InBev (NYSE:BUD) picked up another brewery this week with the acquisition of Brouwerij Bosteels. Bosteels has been owned by the same family since 1791 which gives it a similar history as the Anheuser-Busch part of the InBev empire.
The company reportedly paid $225M for the Belgium-based maker of Tripel Karmeliet, Kwak, and Deus beers.
An AB InBev spokesperson says the company will focus on the Europe export market with the new brands and dabble with a small penetration in the U.S.
Around 3% of the combined workforce of Anheuser-Busch InBev (NYSE:BUD) and SABMiller (OTCPK:SBMRY) could be laid off in the three years following the completion of their merger. That 3% though, excludes sales and front-office supply staff, as AB InBev says regulatory restrictions prevent it from moving forward with integration plans at the moment.
Combined, the two companies currently employ about 220K.
The board at SABMiller (OTCPK:SBMRY) officially throws its support behind the acquisition of the company by Anheuser-Busch InBev (BUD +2.4%). The £79B ($104.94B) offer was at the "lower end" of the company's acceptable range.
A-B landed its last required regulatory approval earlier today in China after raising its offer for SABMiller at the beginning of the week.
The deal brings together a large number of beer brands into the same corporate house even after key divestitures across regions. A partial list of the Megabrew assets includes Bud Light, Budweiser, Michelob, Rolling Rock, Busch, Shock Top, Natural, Goose Island, Blue Point, Four Peaks, Grolsch, Pilsner Urquell, Foster's Lager, and Castle Lager.
Shares of MolsonCoors (NYSE:TAP) are up 3.32% with the company now set to control MillerCoors in the U.S. by itself. SABMiller stakeholder Altria (MO +1%) also perked up after the announcement.
Responding to investor concerns about a slump in the pound, AB InBev (NYSE:BUD) has raised its bid for SABMiller (OTCPK:SBMRY) to £45 a share, from £44 previously, valuing the British brewer at £79B ($103B).
It also increased the amount of cash for shareholders who choose a cash-and-stock alternative.
The deal has already been approved by competition authorities in the U.S. and South Africa, leaving Chinese approval the last big antitrust hurdle to the combination.
Institutional investors are grumpy after the recent sharp decline in the pound turned around the value of their cash-out alternatives, although it's likely the board will wait for more regulatory hurdles to be cleared before going back to A-B.
A SABMiller board meeting is underway today just ahead of tomorrow's annual meeting.
SABMiller trades about 4% below its post-buyout high.