AB InBev’s Offer for SABMiller: The Danger of Delay
Keywords:
Case Study, takeover offer, regulatory approval, Brexit, poor fiscal year, revised offerAbstract
In late 2015, SABMiller accepted a takeover offer from AB InBev, but since AB InBev and SABMiller were the world’s two largest brewers, the acquisition was contingent on lengthy regulatory approval. While trying to gain approval, a variety of factors changed including a poor fiscal year for SABMiller and a devaluation of the British pound due to the Brexit decision. Furthermore, the British courts split the SABMiller shareholders into two classes and ruled that the deal had to be approved by both classes, not just en masse. These issues brought into focus concerns about the value of the deal and forced AB InBev to revise their original offer in both price and structure. But was the new deal better or worse and for whom?
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