SABMiller Pauses Integration Work With Anheuser-Busch InBev
July 27 2016 - 12:48PM
Dow Jones News
By Saabira Chaudhuri
SABMiller PLC has hit the pause button on its integration work
with Anheuser-Busch InBev SA, according to a person familiar with
the matter, as the London-brewer's board consults with shareholders
over whether ABInBev's revised offer is acceptable.
In the spring, SABMiller had begun working with AB InBev on
integrating finance, technology, procurement and certain
supply-chain functions, according to this person, but the company
decided to halt this work following AB InBev's announcement that
its revised offer for SABMiller was final.
AB InBev shares were down 2.7% in recent trading in Brussels.
SABMiller's shares were down 0.7%.
SABMiller's board is now consulting with shareholders and plans
to meet to consider the revised offer before making a final
recommendation.
The Belgian-based beer giant on Monday raised its cash offer to
GBP45 ($59.10) a share from GBP44 a share to appease shareholders
of SABMiller, who have watched the value of the offer fall along
with sterling. The pound sank sharply after the June 23 vote by
Britain to leave the European Union.
That decline has deflated the value of AB InBev's cash-only
offer, intended for most shareholders, compared with a separate
cash-and-share offer aimed at SABMiller's two biggest shareholders,
U.S. cigarette maker Altria Group Inc. and Colombia's Santo Domingo
family.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
(END) Dow Jones Newswires
July 27, 2016 12:33 ET (16:33 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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