The world’s biggest beer deal has been talked about for a while but now it’s official – SABMiller and AB InBev will merge in a $108 billion (R1,5 trillion) coming together that makes them well and truly the industry leaders.
One map in particular has been bandied around that highlights their world domination as BusinessInsider reports:
[It] shows exactly why the US giant wanted the deal to happen, why SABMiller was able to drive the price higher, and just how much of the world’s beer market the merged company will control.
The red areas show countries where AB InBev dominates, orange is where the two brewing giants share the market, and yellow represents areas of SABMiller dominance. The post-merger company will produce one-third of the world’s beer.
Let’s take a look at the map then:
Whilst that more than a trillion rand deal is a staggering number, if one examines SABMiller’s domination in various lucrative markets it makes financial sense for AB InBev to shell it out rather than invest themselves and try and compete:
SABMiller’s latest trading statement showed an 11% rise in revenues from Africa in the second quarter of the year, while revenue from its Latin American operations rose by 9%. An update from July reported a 15% jump in revenues from India, supported by a 9% rise in sales.
We can only hope that this merger doesn’t spell the end for the little guys – what would Cape Town be without overpriced craft beers sold at every bar?
[source:businessinsider]
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