As the deadline for the biggest beverage company merger approaches, Anheuser-Busch InBev is planning to increase its bid to acquire SABMiller as it demands for a higher share price. Earlier this month, the world's largest brewer and Budweiser manufacturer has approached the British-South African multinational brewing and beverage company. Though they have started their amicable talks, the two beverage giants can't seem to agree with their merger price.
Just days before the deadline for a formal offer, AB InBev and SABMiller are still at odds with the takeover bid price. According to Bloomberg Business, SABMiller wants AB InBev to pay closer to £45 per share because the most-recent proposed bid of £42.15 is too low. However, AB Inbev has yet to agree with the proposal.
AB InBev has a "put up or shut up" deadline of October 14, by when it must make a formal offer or walk away from the deal for six months, as previously reported. Since AB InBev has more than 200 brands under its name including Corona and Stella Artois, the Belgian brewing giant's offer for its British rival, SABMiller, could form a brewing giant with more than 400 brands. And if the deal were to go into fruition, the merger would be the largest takeover and one of the priciest M&A deals ever in history.
Unfortunately, AB InBev is also reportedly willing to walk away from the deal since SABMiller already rejected three offers. Reuters noted that AB InBev Chief Executive Carlos Brito, who went public with the most recent bid last week, is already getting frustrated over SABMiller's response. However, he never called it final.
"I have a hard time believing they will offer 45 pounds ($68.92) a share," an insider familiar with AB Inbev's thinking said, as New York Post.
Meanwhile, AB Inbev has until Wednesday to make a committed offer. If no deal has been agreed, it is barred from approaching SABMiller about a merger for six months, as under the British takeover law.
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