AB InBev launches SAB bid, to sell MillerCoors stake

Anheuser-Busch InBev, maker of Budweiser and the world's largest brewer, on Wednesday finalized its offer to buy smaller rival SABMiller. The transaction would create the largest beer company in the world.

In a side deal aimed at clearing regulatory hurdles for Anheuser-Busch InBev's monster acquisition of SABMiller, Molson will acquire SABMiller's 58 percent stake in , giving it full control over brands like Coors Light, Miller Genuine Draft and Blue Moon.

The companies had twice extended the deadline for a formal offer, implementing an agreement in principle announced October 13.

By buying SABMiller, AB InBev would add Latin American markets such as Colombia and Peru and crucially enter Africa at a time when a few of its home markets such as the United States are weakening as drinkers shun mainstream lagers in favour of craft brews and cocktails.

Furthermore, according to CNBC, these two beer giants own over hundreds of brands, including America's most popular beer, Budweiser.

Around 35% of annual cost savings will come from making changes in this area, but AB InBev said it expects that "key members of SABMiller's management team and employees would play a significant role in the combined group".

"We are pleased to have reached this agreement with Molson Coors to divest SABMiller's U.S. assets; and we will continue to proactively address any regulatory concerns in other relevant markets", he said.

A few industry experts believe the liquidation of its stake in MillerCoors will help with regulators, but feel there could still be obstacles with regulators to finish the deal.

Under the terms, AB InBev is offering to pay £44, or about $66.49, a share for SABMiller.

AB InBev plans to take over SABMiller for $107 billion, and hopes to seal the deal next year.

The combined company's stock will be listed on Belgium's stock exchange, with secondary listings in NY, South Africa and Mexico.

"In consolidating ownership of MillerCoors, we will strengthen our presence in the highly attractive USA beer market, further improve our global scale and agility, benefit from significantly enhanced cash flows, and capture substantial operational synergies", Mark Hunter, the Molson Coors president and chief executive, said in a news release.