Brewers SABMiller and AB InBev agree 44 pound a share takeover

Reuters News
Posted: Oct 13, 2015 2:22 AM

LONDON (Reuters) - Anheuser-Busch InBev <ABI.BR> and SAB Miller <SAB.L> said on Tuesday they had agreed terms for a takeover, with the world's largest brewer set to pay 44 pounds ($68) per share in cash for its smaller rival.

After days of wrangling over price, the two firms said they had now agreed the terms in principle, with the price representing a premium of around 50 percent to SABMiller's closing price on Sept. 14.

There is also an option for investors to take shares.

Under the terms of the deal, AB InBev would agree to a reverse break fee of $3 billion payable to SABMiller should the transaction fail due to regulatory hurdles or if AB InBev shareholders don't approve it.

($1 = 0.6510 pounds)

(Reporting by Kate Holton; editing by Paul Sandle)