Get ready, Bros, to drink the greatest beer you’ve ever consumed.
One part Bud Light, one part Miller Lite.
That’s it. I call it Super Beer, and it is happening now that Budweiser is purchasing Miller. In the largest business transaction of the year, and the largest alcohol transaction ever (blowing away your tab from St. Patty’s Day), AB-InBev (who own Bud) is purchasing SABMiller (who own … duh) for $106 BILLION dollars.
One hundred and six billion fucking dollars. That will buy you 21 billion MGDs at five bucks a pop. That is A LOT of MGDs. More than I certainly want. More than anyone wants, probably.
Bloomberg has the scoop on the deal.
The agreement, which is tentative, caps weeks of back-and-forth over price, with SABMiller saying three previous overtures undervalued its business. For AB InBev Chief Executive Officer Carlos Brito, the combination would cap a $90 billion dealmaking spree over the last decade, turning a regional brewer into the undisputed global leader.
It’s true. No one had ever heard of InBev ten years ago and now it owns every beer in the world.
Together, AB InBev and SABMiller will be the world’s largest consumer-staples company by earnings, according to Exane BNP Paribas analysts, who estimate the combined company will make $25 billion before interest, tax, depreciation and amortization in 2016. The enlarged brewer will have the number one or two positions in 24 of the world’s 30 biggest beer markets, they estimate.
A potential combination of the beermakers had been seen as likely for years as they have limited geographical overlap and aren’t controlled by a family foundation like their main competitors, Heineken NV and Carlsberg A/S. AB InBev wants SABMiller’s exposure to emerging markets in Latin America and Africa.
If the deal goes through, the combined net worth of the new conlgomerate would be over a quarter of a trillion dollars.
Jeebus. Who knew we spent so much on sauce?
Well, I did.