The purchase of SABMiller plc by Anheuser-Busch InBev (AB InBev) is a step forward from completion after AB InBev shareholders voted for its purchase on Wednesday, 29th September 2016, in London.
SABMiller, a multinational beverage, and brewing corporation is also the second-largest brewery company in the world. The acquisition of SABMiller will make AB InBev the only dominant brewer in the global stage.
The expected lucrative deal is to be finalized by next month, 10th October 2016, only if shareholders from both SABMiller and Newbelco accept the takeover of SABMiller by AB InBev.
At such a moment when the global economy is experiencing several disturbances: the question needed to be asked is whether a deal of this kind is able to improve the lives of about 70,000 employees in more than 80 countries working for SABMiller or take away the only source of income of these employees during this uncertain economic period.
Retrenchment has already been noted and would likely occur three months after the signing of all contracts needed in order to seal the deal.
On the other hand, a monopoly of the beer brewing and beverage industry should, at its very beginning stage of consolidation, as such a profitable deal has the ability to reduce competition.
SABMiller, Pernod Ricard, and AB InBev are the top three alcohol maker globally. In addition, SABMiller is the first Coca-Cola bottler provider.
SAB Ltd, a subsidiary of SABMiller, is the leading brewing as well as bottling company in SA. It has these brands under its belt: Castle Lager, Grolsch, Castle Milk Stout, Hansa Marzen Gold, Hansa Pilsener, Carling Black Label, Castle Lite, Redd’s, Peroni, Miller Genuine Draft, Brutal Fruit, and Sarita.
Due to the company’s lucrative brands, its shares are traded both on the London Stock Exchange (LSE) and the Johannesburg Stock Exchange (JSE).