Bottoms up!

It’s been touted as the fifth biggest corporate merger in history, and it involves a product that’s been around for about 5,000 years. While there’s nothing like enjoying a beer or two, you’re in for an expensive shout when the first round costs US$104 billion dollars.

Overnight, after several weeks of courting, global brewing giant Anheuser-Busch InBev has finally offered another huge beer company, SAB Miller, the offer it couldn’t refuse. It’s been a game of catch and kiss for months now, but with the latest offering it appears that the board of SAB Miller has decided to pucker up and take the deal.

SAB Miller is (for now) an British-South African company with beer assets around the world. For those playing at home, yes. this is the same company that purchased Carlton & United Breweries in 2011 for $12.3 billion dollars – moving ownership of iconic brands such as Victoria Bitter and Carlton Draught off-shore for the first time.

However, it appears that the beer guzzling bellies of Australian and Brits are not what AB Inbev saw as the most attractive asset for SAB Miller. In a global market, with new opportunities constantly appearing, it was SAB Millers portfolio of African brands that appear to be the prize that AB Inbev has been chasing.

The most prominent brand is Castle Lager. Cricket and rugby fans will recognise this from there strong presence across South Africa’s national sporting sides. However, through a combination of other brands within the portfolio, as well as partnerships cross the continent, the reach of SAB Miller is irresistible.

With a rapidly growing middle class, and a huge population coming through in their teens and twenties, this acquisition is based on significant growth forecasts across Africa. While there will certainly need to be thorough regulatory approval for a deal that will see AB InBev sell 1 in 5 beers across the planet, no one can doubt the shrewd nature of the deal.