Tuesday, July 26, 2016 - 13:10
AB InBev increases bid on Grolsch owner after Brexit
Belgian brewer AB InBev decided to increase its takeover bid for rival SABMiller to compensate for the deprecation of the British-South African company because of the looming Brexit, AB InBev announced on Tuesday, NU.nl reports. The United Kingdom's decision to leave the European Union resulted in the value of the British pound falling in relation to other currencies. For SABMiller shareholders, this meant that they would get less out of AB InBev's purchase of SAB Miller. To compensate for this, the Belgian beer giant is now offering 45 pounds per share, instead of 44 pounds. This values SABMiller, which is known for brands like Grolsch, Pilsner Urquell, Peroni and Foster's, at 79 billion pounds (about 93 billion euros). With AB InBev being the largest brewer in the world and SABMiller standing in second place, the merge will give them an even more dominant position in the beer market. To reduce competition concerns in Europe, the two companies agreed to sell off a number of brands, including Netherlands based Grolsch.