SABMiller and rival brewer Anheuser-Busch InBev agree upon a new proposal of £44 a share…reports Asian Lite news
SABMiller had rejected the previous offers, claiming that they “very substantially” undervalued the company, says a BBC news report.
A tie-up between the two firms would create the world’s largest brewer.
SABMiller’s share price was up by 8.68% to £39.36. Meanwhile, shares in AB InBev were 2.85% higher at 101.15 euros in trading in Brussels.
In a statement, the boards of the two firms said they had “reached agreement in principle on the key terms of a possible recommended offer”.
SABMiller is the maker of brands including Peroni and Grolsch.
It has a workforce of close to 70,000 people in more than 80 countries, and global annual sales of more than $26bn. SABMiller has said its board is ready to give its unanimous backing to the all-cash £44 per share offer.
AB InBev brews beers such as Budweiser, Stella Artois, and Corona among others. It has a workforce of 155,000 and makes more than $47.1bn in global revenues.
If the deal, worth about £70bn, goes ahead, the newly-created brewing giant will make about 30% of the world’s beer.
The two companies have not yet formally finalised the terms of an offer, but the latest development means they have extended the City deadline for a firm offer until 28 October.
The latest proposal comes a day before the original deadline, by which AB InBev had to make a formal bid for SABMiller or walk away for six months, adds BBC news.
The offer represents a premium of about 50% over and above SABMiller’s share price in mid-September, before the bid battle started.