AB-Inbev confirms approach made to Peroni brewer SAB Miller about possible bid
Stella Artois and Budweiser brewer AB-Inbev has confirmed that it has made an approach to UK-based rival SAB Miller about a possible takeover of the company.
SAB Miller went public with the approach after the Financial Times told the company it intended to report it, the newspaper said.
In a statement, SAB Miller said: "The board of SAB Miller notes the recent press speculation and confirms that AB-Inbev has informed SAB Miller that it intends to make a proposal to acquire SAB Miller.
"No proposal has yet been received and the board of SAB Miller has no further details about the terms of any such proposal.
"The board of SAB Miller will review and respond as appropriate to any proposal which might be made.
"There can be no certainty that an offer will be made or as to the terms on which any offer might be made."
It advised shareholders to hang on to their stock in the meantime, but any temptation to sell increased as the share price rose by almost 20% after the statement was issued.
In response to SAB Miller's statement, AB-Inbev confirmed the approach in a statement of its own.
It said: "AB-Inbev confirms that it has made an approach to SAB Miller's board of directors regarding the combination of the two companies.
"AB-Inbev's intention is to work with SAB Miller's board toward a recommended transaction.
"There can be no certainty that this approach will result in an offer of agreement, or as to the terms of any such agreement."
The Financial Times put the combined market capitalisation of the two businesses at US$250 billion ((£162.2 billion).
A union of the two multinationals would bring together AB-Inbev's Stella Artois, Beck's, Budweiser and Corona beer brands with SAB Miller's Peroni, Pilsner Urquell, Tyskie and Miller Genuine Draft.
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