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10 SABMiller Takeover Facts – WMNews Ep. 50


when two massive beer companies meet the

when two massive beer companies meet the money involved is enough to make you

money involved is enough to make you

money involved is enough to make you dizzy and that’s before you’ve sampled

dizzy and that’s before you’ve sampled

dizzy and that’s before you’ve sampled any of their products welcome to

any of their products welcome to

any of their products welcome to watchmojo.com nth we’re counting down

watchmojo.com nth we’re counting down

watchmojo.com nth we’re counting down ten crucial facts you should know about

ten crucial facts you should know about

ten crucial facts you should know about the sabmiller takeover number ten

the sabmiller takeover number ten

the sabmiller takeover number ten what is SABMiller SABMiller is the

what is SABMiller SABMiller is the

what is SABMiller SABMiller is the world’s second largest beer brewer

world’s second largest beer brewer

world’s second largest beer brewer holding close to eighteen percent of the

holding close to eighteen percent of the

holding close to eighteen percent of the industry’s global profit pool though

industry’s global profit pool though

industry’s global profit pool though based in London England it’s a South

based in London England it’s a South

based in London England it’s a South African company with origins that date

African company with origins that date

African company with origins that date back to 1895 known simply as South

back to 1895 known simply as South

back to 1895 known simply as South African Breweries for over a century it

African Breweries for over a century it

African Breweries for over a century it acquired Miller Brewing in 2002 and has

acquired Miller Brewing in 2002 and has

acquired Miller Brewing in 2002 and has been trading as SABMiller ever since the

been trading as SABMiller ever since the

been trading as SABMiller ever since the subject of a massive acquisition bid in

subject of a massive acquisition bid in

subject of a massive acquisition bid in October of 2015

October of 2015

October of 2015 SAV Miller’s major beer brands include

SAV Miller’s major beer brands include

SAV Miller’s major beer brands include Foster’s Miller Roche and Peroni number

Foster’s Miller Roche and Peroni number

Foster’s Miller Roche and Peroni number nine who is a B InBev anheuser-busch

nine who is a B InBev anheuser-busch

nine who is a B InBev anheuser-busch InBev is the world’s largest beer brewer

InBev is the world’s largest beer brewer

InBev is the world’s largest beer brewer holding almost 40 percent of the global

holding almost 40 percent of the global

holding almost 40 percent of the global profit pool in October 2015 a B InBev

profit pool in October 2015 a B InBev

profit pool in October 2015 a B InBev announced that it was looking to take

announced that it was looking to take

announced that it was looking to take over SABMiller in what would become one

over SABMiller in what would become one

over SABMiller in what would become one of the biggest business mergers of all

of the biggest business mergers of all

of the biggest business mergers of all time the company is already the product

time the company is already the product

time the company is already the product of mergers made between three

of mergers made between three

of mergers made between three international groups

international groups

international groups Belgium’s Interbrew Brazil’s and Bev and

Belgium’s Interbrew Brazil’s and Bev and

Belgium’s Interbrew Brazil’s and Bev and the US company and Heiser Busch in 2014

the US company and Heiser Busch in 2014

the US company and Heiser Busch in 2014 a V InBev generated over 47 billion

a V InBev generated over 47 billion

a V InBev generated over 47 billion dollars in revenue and already held over

dollars in revenue and already held over

dollars in revenue and already held over 40% market share in seven of its top ten

40% market share in seven of its top ten

40% market share in seven of its top ten markets including the United States and

markets including the United States and

markets including the United States and Canada Budweiser is probably its most

Canada Budweiser is probably its most

Canada Budweiser is probably its most famous brand number eight what are the

famous brand number eight what are the

famous brand number eight what are the details of the takeover a B InBev made

details of the takeover a B InBev made

details of the takeover a B InBev made their bid to buy sabmiller on October 13

their bid to buy sabmiller on October 13

their bid to buy sabmiller on October 13 2015 it was the fifth time that

2015 it was the fifth time that

2015 it was the fifth time that SABMiller was approached by their

SABMiller was approached by their

SABMiller was approached by their markets superior after the previous four

markets superior after the previous four

markets superior after the previous four efforts were deemed not lucrative enough

efforts were deemed not lucrative enough

efforts were deemed not lucrative enough the latest bid was acceptable in

the latest bid was acceptable in

the latest bid was acceptable in principle with a be in Bev having until

principle with a be in Bev having until

principle with a be in Bev having until October 28 2015 to make a firm official

October 28 2015 to make a firm official

October 28 2015 to make a firm official offer the deal has been dubbed mega brew

offer the deal has been dubbed mega brew

offer the deal has been dubbed mega brew and it was made at the very last moment

and it was made at the very last moment

and it was made at the very last moment under UK takeover law Wednesday October

under UK takeover law Wednesday October

under UK takeover law Wednesday October 14th was the deadline day for any

14th was the deadline day for any

14th was the deadline day for any acquisition bids number 7 how much is

acquisition bids number 7 how much is

acquisition bids number 7 how much is the takeover worth as of mid October

the takeover worth as of mid October

the takeover worth as of mid October 2015 a be in beth has been preparing to

2015 a be in beth has been preparing to

2015 a be in beth has been preparing to pay SABMiller 60 7.62 cents a share

pay SABMiller 60 7.62 cents a share

pay SABMiller 60 7.62 cents a share amounting to a one hundred nine point

amounting to a one hundred nine point

amounting to a one hundred nine point four billion dollar total takeover cost

four billion dollar total takeover cost

four billion dollar total takeover cost their highest previous bid had been

their highest previous bid had been

their highest previous bid had been almost $1 less per share at 66 dollars

almost $1 less per share at 66 dollars

almost $1 less per share at 66 dollars and 85 cents however should the merger

and 85 cents however should the merger

and 85 cents however should the merger receive all necessary approvals and

receive all necessary approvals and

receive all necessary approvals and allowances by regulators it would create

allowances by regulators it would create

allowances by regulators it would create a two hundred and fifty billion dollar

a two hundred and fifty billion dollar

a two hundred and fifty billion dollar company in control of a third of the

company in control of a third of the

company in control of a third of the world’s beer supply once the pre October

world’s beer supply once the pre October

world’s beer supply once the pre October 28th official bid is lodged should a be

28th official bid is lodged should a be

28th official bid is lodged should a be InBev fail to complete the deal they

InBev fail to complete the deal they

InBev fail to complete the deal they would still be obliged to pay SABMiller

would still be obliged to pay SABMiller

would still be obliged to pay SABMiller up to three billion dollars number six

up to three billion dollars number six

up to three billion dollars number six how big is the worldwide beer industry

how big is the worldwide beer industry

how big is the worldwide beer industry in general beer is big business and it’s

in general beer is big business and it’s

in general beer is big business and it’s getting bigger

getting bigger

getting bigger from 1998 to 2014 global annual

from 1998 to 2014 global annual

from 1998 to 2014 global annual production levels have steadily risen to

production levels have steadily risen to

production levels have steadily risen to 1.9 3 billion hectoliters however

1.9 3 billion hectoliters however

1.9 3 billion hectoliters however critics usually compare current European

critics usually compare current European

critics usually compare current European and Asian markets more favorably than

and Asian markets more favorably than

and Asian markets more favorably than those in North America which are

those in North America which are

those in North America which are sometimes described as stagnant

sometimes described as stagnant

sometimes described as stagnant SABMiller holds brands that are

SABMiller holds brands that are

SABMiller holds brands that are especially popular in Europe

especially popular in Europe

especially popular in Europe Grolsch and Peroni in particular and

Grolsch and Peroni in particular and

Grolsch and Peroni in particular and would therefore bring an inevitable

would therefore bring an inevitable

would therefore bring an inevitable boost to the a be in bev brand which

boost to the a be in bev brand which

boost to the a be in bev brand which tends to dominate north and south

tends to dominate north and south

tends to dominate north and south america number 5 what is craft beer the

america number 5 what is craft beer the

america number 5 what is craft beer the Brewers Association defines craft beer

Brewers Association defines craft beer

Brewers Association defines craft beer using three important terms it has to be

using three important terms it has to be

using three important terms it has to be small with an annual production of 6

small with an annual production of 6

small with an annual production of 6 million barrels or less it has to be

million barrels or less it has to be

million barrels or less it has to be independently owned and it has to be

independently owned and it has to be

independently owned and it has to be traditionally made with traditional

traditionally made with traditional

traditionally made with traditional ingredients by keeping these guidelines

ingredients by keeping these guidelines

ingredients by keeping these guidelines in mind craft beer brewers generally

in mind craft beer brewers generally

in mind craft beer brewers generally produce a wide variety of tastes and

produce a wide variety of tastes and

produce a wide variety of tastes and types of beer

types of beer

types of beer primarily on a never-ending quest to

primarily on a never-ending quest to

primarily on a never-ending quest to innovate and improve the brewing process

innovate and improve the brewing process

innovate and improve the brewing process this relentless drive has paid off in

this relentless drive has paid off in

this relentless drive has paid off in fact America’s craft beer revolution has

fact America’s craft beer revolution has

fact America’s craft beer revolution has seen the number of barrels produced

seen the number of barrels produced

seen the number of barrels produced explode from a mere nine million in 2008

explode from a mere nine million in 2008

explode from a mere nine million in 2008 to twenty-two million in 2014 this

to twenty-two million in 2014 this

to twenty-two million in 2014 this demand for craft beer has resulted in a

demand for craft beer has resulted in a

demand for craft beer has resulted in a sizeable market share of eleven percent

sizeable market share of eleven percent

sizeable market share of eleven percent which is the first time the number has

which is the first time the number has

which is the first time the number has ever reached double digits in the US for

ever reached double digits in the US for

ever reached double digits in the US for small and indie Brewers number four how

small and indie Brewers number four how

small and indie Brewers number four how will this affect the craft beer industry

will this affect the craft beer industry

will this affect the craft beer industry as its dance big beer companies have had

as its dance big beer companies have had

as its dance big beer companies have had to change their strategies as they deal

to change their strategies as they deal

to change their strategies as they deal with the rise in the popularity of craft

with the rise in the popularity of craft

with the rise in the popularity of craft beer they’ve done so by running ads

beer they’ve done so by running ads

beer they’ve done so by running ads disparaging snooty craft beer by buying

disparaging snooty craft beer by buying

disparaging snooty craft beer by buying any craft brewer willing to sell or by

any craft brewer willing to sell or by

any craft brewer willing to sell or by selling their own versions of craft beer

selling their own versions of craft beer

selling their own versions of craft beer under different brand names such as

under different brand names such as

under different brand names such as Coors blue moon or a B InBev’s shock top

Coors blue moon or a B InBev’s shock top

Coors blue moon or a B InBev’s shock top despite its uniqueness however the craft

despite its uniqueness however the craft

despite its uniqueness however the craft beer industry is forever fighting

beer industry is forever fighting

beer industry is forever fighting against internationally recognized

against internationally recognized

against internationally recognized corporate chains such as SABMiller and

corporate chains such as SABMiller and

corporate chains such as SABMiller and Abie InBev the merger between those

Abie InBev the merger between those

Abie InBev the merger between those companies could heap even more pressure

companies could heap even more pressure

companies could heap even more pressure onto smaller companies stealing off

onto smaller companies stealing off

onto smaller companies stealing off massive areas of the market from them

massive areas of the market from them

massive areas of the market from them and leaving them unable to compete on

and leaving them unable to compete on

and leaving them unable to compete on the other hand positive implications

the other hand positive implications

the other hand positive implications might still emerge as the mega brew deal

might still emerge as the mega brew deal

might still emerge as the mega brew deal could prove a blessing in disguise for

could prove a blessing in disguise for

could prove a blessing in disguise for example it could result in even greater

example it could result in even greater

example it could result in even greater commitment from the craft beer drinker

commitment from the craft beer drinker

commitment from the craft beer drinker to their favorite indie brand number

to their favorite indie brand number

to their favorite indie brand number three how did a B InBev grow to dominate

three how did a B InBev grow to dominate

three how did a B InBev grow to dominate the market of course a be in Bev wasn’t

the market of course a be in Bev wasn’t

the market of course a be in Bev wasn’t always the world dominating brand that

always the world dominating brand that

always the world dominating brand that it is today and it began with a

it is today and it began with a

it is today and it began with a relatively humble 1 billion dollar deal

relatively humble 1 billion dollar deal

relatively humble 1 billion dollar deal between two Brazilian Brewers in 1999 in

between two Brazilian Brewers in 1999 in

between two Brazilian Brewers in 1999 in 2004 and Bev and Belgium’s Interbrew

2004 and Bev and Belgium’s Interbrew

2004 and Bev and Belgium’s Interbrew merged establishing itself as the

merged establishing itself as the

merged establishing itself as the world’s largest brewer for the first

world’s largest brewer for the first

world’s largest brewer for the first time in 2008 however in dev reached out

time in 2008 however in dev reached out

time in 2008 however in dev reached out way ahead of its competitors by buying

way ahead of its competitors by buying

way ahead of its competitors by buying anheuser-busch for almost 60 billion

anheuser-busch for almost 60 billion

anheuser-busch for almost 60 billion dollars it also bought the brewer of

dollars it also bought the brewer of

dollars it also bought the brewer of Corona in 2012 for 20 billion dollars

Corona in 2012 for 20 billion dollars

Corona in 2012 for 20 billion dollars and has acquired various crap

and has acquired various crap

and has acquired various crap beer style brewers with in recent years

beer style brewers with in recent years

beer style brewers with in recent years however SABMiller has arguably performed

however SABMiller has arguably performed

however SABMiller has arguably performed slightly better in terms of recent craft

slightly better in terms of recent craft

slightly better in terms of recent craft beer adaptation making the latest a be

beer adaptation making the latest a be

beer adaptation making the latest a be in bev purchase even more desirable

in bev purchase even more desirable

in bev purchase even more desirable number two

number two

number two well competition regulators block the

well competition regulators block the

well competition regulators block the deal unless a be in bed themselves back

deal unless a be in bed themselves back

deal unless a be in bed themselves back out of the deal

out of the deal

out of the deal the only thing that could prevent it

the only thing that could prevent it

the only thing that could prevent it from happening is if competition and

from happening is if competition and

from happening is if competition and antitrust regulators step in or if south

antitrust regulators step in or if south

antitrust regulators step in or if south african tax officials are left unhappy

african tax officials are left unhappy

african tax officials are left unhappy with the proposed merger and therefore

with the proposed merger and therefore

with the proposed merger and therefore attempt to block it at an early stage it

attempt to block it at an early stage it

attempt to block it at an early stage it seems likely that a b InBev will have to

seems likely that a b InBev will have to

seems likely that a b InBev will have to sell off some of its brands in order to

sell off some of its brands in order to

sell off some of its brands in order to meet market standards especially in

meet market standards especially in

meet market standards especially in north america where the two companies

north america where the two companies

north america where the two companies stand to hold around seventy percent of

stand to hold around seventy percent of

stand to hold around seventy percent of the beer market other major Brewers such

the beer market other major Brewers such

the beer market other major Brewers such as Carlsberg and Heineken are likely to

as Carlsberg and Heineken are likely to

as Carlsberg and Heineken are likely to be the first in line should familiar

be the first in line should familiar

be the first in line should familiar brands be sold off number one how will

brands be sold off number one how will

brands be sold off number one how will the takeover affect the beer industry

the takeover affect the beer industry

the takeover affect the beer industry the global beer industry is entering

the global beer industry is entering

the global beer industry is entering into a largely unpredictable period the

into a largely unpredictable period the

into a largely unpredictable period the ABN Bev sabmiller merger is one of the

ABN Bev sabmiller merger is one of the

ABN Bev sabmiller merger is one of the biggest corporate deals of all time and

biggest corporate deals of all time and

biggest corporate deals of all time and will inevitably inspire massive change

will inevitably inspire massive change

will inevitably inspire massive change experts are already highlighting how

experts are already highlighting how

experts are already highlighting how difficult it could prove for a be in Bev

difficult it could prove for a be in Bev

difficult it could prove for a be in Bev to make a profit on the takeover with

to make a profit on the takeover with

to make a profit on the takeover with some suggesting that billions of dollars

some suggesting that billions of dollars

some suggesting that billions of dollars will have to be saved annually or else

will have to be saved annually or else

will have to be saved annually or else brands will be sold off voluntarily the

brands will be sold off voluntarily the

brands will be sold off voluntarily the craft beer industry will also be

craft beer industry will also be

craft beer industry will also be affected although perhaps not as

affected although perhaps not as

affected although perhaps not as negatively as some commentators fear the

negatively as some commentators fear the

negatively as some commentators fear the big bad corporate rival has just gotten

big bad corporate rival has just gotten

big bad corporate rival has just gotten bigger and badder in the eyes of the

bigger and badder in the eyes of the

bigger and badder in the eyes of the craft beer drinker the only way to rise

craft beer drinker the only way to rise

craft beer drinker the only way to rise against is to raise a glass of the

against is to raise a glass of the

against is to raise a glass of the lesser-known and local did these facts

lesser-known and local did these facts

lesser-known and local did these facts get you thinking to vote for which new

get you thinking to vote for which new

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