Industry
AB InBev–SABMiller: $107B Beer Mega-Deal
How the world's two largest brewers combined and what regulators forced.
Announced in 2015 and closed in 2016, AB InBev paid $107B for SABMiller — the largest UK takeover ever at the time. Cost synergies were pitched at $1.4B annually within 4 years.
To clear antitrust, AB InBev had to divest SAB's stake in MillerCoors (sold to Molson Coors for $12B) and the Peroni/Grolsch portfolio (sold to Asahi). In China, AB divested CR Snow.
Financed with ~$75B in debt — at the time, the largest corporate bond issuance ever. The deal pushed AB's leverage to ~4.8x EBITDA, leading to dividend cuts and years of deleveraging.
Key Takeaways
- →Mega-deals in consolidated industries trigger major divestitures.
- →Leverage limits dividend policy for years post-close.
- →Synergy targets get scrutinized post-close — under-delivery hits the share price.