Dive Brief:
- SABMiller and Anheuser-Busch InBev have received a deadline extension from U.K. regulators to Nov. 4 at 5 p.m. GMT to have more time before AB InBev makes a formal takeover offer.
- The two companies are working on a deal to sell off SABMiller's 58% stake in the MillerCoors joint venture to its partner Molson Coors Brewing. AB InBev won't hold up the offer based on the progress of that deal, but both companies hope to announce it when or within a short period of time after AB InBev makes its formal offer, according to the Wall Street Journal.
- This is the second deadline extension for the takeover bid, as regulators pushed back the original deadline from Oct. 14 to Oct. 28.
Dive Insight:
The two companies are also working on "a detailed cooperation agreement focused on meeting the conditions that will have to be in place before SABMiller applies to the court for the scheme of arrangement," according to The Wall Street Journal's sources.
The scheme of arrangement is "a court-sanctioned deal that under U.K. law becomes binding on all investors providing 75% of the relevant classes of investor vote in favor of the transaction. A scheme of arrangement, unlike a tender offer, will hinge on SABMiller taking the offer to its shareholders," The Wall Street Journal reported.
AB InBev and SABMiller reached an agreement on a $104.2 billion takeover bid earlier this month, which would be the largest beverage merger in history. When combined, the two companies would control more than 30% of the global beer market.