Dive Brief:
- Anheuser-Busch InBev and SABMiller have received their third extension from UK regulators to finalize the formal terms of AB InBev's takeover offer. They now have until 5 p.m. GMT on Nov. 11.
- "The companies have made 'good progress' in agreeing to the terms of the offer, they said, and AB InBev confirmed that funds for the cash part of the bid are in place," Bloomberg reported.
- Some analysts speculate both companies are continuing to shore up shareholder support. Others say that SABMiller's divestment of MillerCoors in the U.S. may be holding up the finalized deal.
Dive Insight:
"It’s a complex deal so the extension isn’t surprising," Eddy Hargreaves, an analyst at Canaccord Genuity told Bloomberg. "It may even be that they are seeking to say something positive about the disposal of the MillerCoors stake on the day of the formal bid."
MillerCoors is expected to release its earnings report on Nov. 5.
The company has also agreed to extend its sponsorship of the NFL by another six years, as the deal was set to expire after the 2017 Super Bowl. "The deal is valued at more than $1.4 billion, more than a 15% increase over AB InBev’s current six-year agreement with the league, according to people familiar with the sponsorship," The Wall Street Journal reported.