Megabrew merger between AB InBev and SABMiller inches closer as SAB shares suspend trading on London Stock Exchange
Shares in British drinks giant SABMiller suspended trading on the London Stock Exchange this morning as the Megabrew merger between SAB and Belgian beer giant Anheuser-Busch InBev inches closer.
Yesterday, the UK's High Court gave its approval to AB InBev's £79bn takeover and the holding company for the combined company, Newbelco, listed 1.7bn shares on the Johannesburg Stock Exchange.
Formerly FTSE 100-listed SABMiller, which is the world's second largest brewer by revenues, makes beers include Fosters, Pilsner Urquell and Miller.
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The company was formed in 2002 when UK-based SAB acquired Miller Brewing, though SAB's origins date back to South Africa in 1895.
Shares closed for the final time yesterday at 4,494.5p.
AB InBev and SABMiller expect the merger to be effective and combination to complete on 10 October, while listings of the combined group are due to be launched on 11 October.
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The group, which will retain the name Anheuser-Busch InBev, will be primarily listed on Euronext Brussels.
It will have secondary listings on the Mexico Stock Exchange, the ADSs arm of the New York Stock Exchange, and the Johannesburg Stock Exchange.
As well as losing its name to the merger, SABMiller's UK headquarters is also likely to be disbanded as the company base will stay in Leuven, Belgium.
Around 5,500, or three per cent, of the combined workforce will be offloaded as a result of the tie-up.