The world’s biggest brewer, ABInBev, on Wednesday went public with a £68 billion ($US104 billion) takeover bid for rival SABMiller, the world’s second-biggest brewer.
ABInBev has already had two bid proposals knocked back by SABMiller and it looks likely that SAB will reject this latest offer. But that hasn’t stopped ABInBev going all out to try and convince investors of the case for the deal.
In its statement announcing the offer ABInBev says a combination would “build the first truly global beer company,” given both businesses complimentary markets.
And as part of its charm offensive, ABInBev has even created a bells-and-whistles website promoting the deal with the URL www.globalbrewer.com — subtlety is not in abundance here.
CEO Carlos Brito has recorded a video message answering questions like “Why do you want to combine with SAB?” and “Why is this good for consumers?”
Brito outlines pretty much what is already in the offer document — SABMiller and ABInBev have complementary geographic footprints, similar values, and could offer more beers across more areas.
But this isn’t just a takeover to please ABInBev shareholders by bolting on more growth. Oh no. This is about creating a “Better World”.
But, unfortunately for ABInBev, it looks like all that money they spent on web designers and video producers could be for nothing — SABMiller has already sent out a very strong signal that it will reject the latest offer unless ABInBev hikes its price.