The King of Beers might be increasing its kingdom. Photo courtesy AB InBev
Laine Doss // Broward, Palm Beach New Times

In a deal that CNN Money calls the biggest beer deal ever, the two biggest beer companies in the world have stepped closer together, when they announced they have agreed to a merger — in principle.

Under the agreement, AB InBev would buy SABMiller shares at GBP 44 per share ($67.60) in an all-cash offer, which represents a premium of about 50 percent to SABMiller's share price on September 14. In addition, SABMiller shareholders would be entitled to dividends as part of the terms. This preliminary deal is good through October 28, at which time, AB InBev must put a formal offer on the table.

A release issued by AB InBev confirmed the company would agree to a "best efforts" commitment to obtain any regulatory clearances required before the transaction. This included $3 billion payable to SABMiller in the event that the transaction fails to close as a result of the failure to obtain regulatory clearances or the approval of AB InBev shareholders.

October 22nd, 2015

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