LONDON (AP) — The world's two biggest beer makers will join forces to create a company that produces almost a third of the world's beer. But in the U.S., the deal will not bring arch rivals Budweiser and Miller under the same roof.
Budweiser maker AB InBev announced Wednesday a final agreement to buy SABMiller for 71 billion pounds ($107 billion).
To ease concerns the brewing behemoth might get a stranglehold of the U.S. market, SABMiller will sell its 58 percent stake in a venture with fellow brewer Molson Coors for $12 billion. The deal includes rights to the Miller brand name and gives Moulson Coors full control of operations.
The combined company – which as yet does not have a name – will also need to address regulatory issues in China, where SABMiller has a leading position with a 49 percent stake in the Chinese beer Snow. China is the focus of intense interest, as it already drinks a quarter of the world's beer.
“This combination would create the first truly global brewer,” AB InBev Ceo Carlos Brito told reporters in a conference call after the deal, which is set to be completed next year.
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Source; Associated Press