The company hasn’t yet released any of the details of the proposal to SABMiller, which released a statement this morning in response to speculation around the potential deal.
“The board of SABMiller will review and respond as appropriate to any proposal which might be made,” the company said in a statement. “There can be no certainty that an offer will be made or as to the terms on which any offer might be made.”
ABInBev then confirmed in its own statement that it has approached SABMiller’s board of directors about a combination of the massive brewing companies.
“AB InBev’s intention is to work with SABMiller’s board toward a recommended transaction,” the company said in a statement. “There can be no certainty that this approach will result in an offer or agreement, or as to the terms of any such agreement.”
ABInBev must either announce by 5 p.m. on Oct. 14 either a firm intention to make an offer or that it does not plan to make an offer.
London-based SABMiller is one of the top five global brewing companies, making more than 200 beers including Miller Lite and and Pilsner Urquell. It reported $3.3 billion in net profit in the year ended March 31, down from $3.4 billion a year ago. Revenue was flat at $22.1 billion.
Leuven, Belgium-based Anheuser-Busch INBev is the world’s leading brewer and one of its top five consumer products companies. AB InBev’s brands include Budweiser, Corona and Stella Artois. Its second quarter revenue was down 9 percent to $11.1 billion.
Both breweries have struggled with flagging consumer demand for their drinks, as consumers turn to smaller craft brews.
