News

US: SAB confirms it is in talks over Miller

Most popular

How US wholesalers view the next six months

Heineken faces China distribution gap - comment

Biden win focuses drinks on climate change

Why Aperol's crown is worth fighting over

Heineken faces tough battle in China - analysis

MORE
UK-based brewing conglomerate, South African Breweries (SAB), has confirmed that it is in talks with US food, drinks and tobacco group, Philip Morris, regarding the acquisition of Miller Brewing. However, SAB said the discussions were "at a preliminary stage and no conclusions have been reached."

Miller Brewing is valued at around $5 billion but the current negotiations are thought to involve Philip Morris taking a substantial shareholding in a merged SAB-Miller group.

The merger of Miller and SAB would create the world's second-largest brewer, a heavyweight player that could compete with the world's biggest brewer, Anheuser-Busch, and other global brewing forces like Interbrew and Heineken. SAB owns the Pilsner Urquell brand, has 95% of the South African beer market and operations in China, Poland and Honduras.

Analysts have generally welcomed the idea of SAB merging with Miller. Investment Bank WestLB Panmure said that after such a merger, SAB would be deriving 30% of its EBIT from South Africa, as against the current 50%, reducing its exposure to emerging markets and the Rand.


Related Content

"Our strategy is to double the top and halve the bottom" - Interview, Kay Nash, MD of Distell's Libe...

"Where is the next opportunity? It's in Asia. And, in Asia, the opportunity is China" - South Africa...

The next big thing in North American beer is…? - Comment

The next big thing in North American beer is…? - Comment...

Where is Molson Coors today and where will it be tomorrow? - Comment

Where is Molson Coors today and where will it be tomorrow? - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?