AB InBev To Sell MillerCoors Stake As It Formalizes SABMiller Purchase

• Anheuser Busch Inbev SA (ADR) BUD has reached an agreement in principle to acquire SABMiller plc SBMRY back in October.
• AB InBev will also sell SABMiller's 58 percent stake in MillerCoors to Molson Coors Brewing Company TAP.
• InBev's acquisition of rival SABMiller for more than $100 billion will prove to be one of the largest acquisitions in corporate history.

Anheuser Busch Inbev was forced to raise its bid for SABMiller several times, but the two companies ultimately agreed to a merger in principal for $106 billion back in October. Analysts at Citi argued at the time that the massive merger could create massive synergies and could be approximately 13 percent accretive to InBev's earnings per share in year three. The merger would combine InBev's iconic global brands such as Budweiser, Stella Artois and Corona with SABMiller's Pilsner Urquell and Peroni. A combined entity is expected to produce roughly one third of the world's beer supply. Naturally, shareholders can expect the deal will be closely examined by relevant regulatory bodies as the combined entity could potentially abuse its market leading dominance, resulting in increased prices for consumers. InBev took a step forward on Wednesday in ensuring its acquisition of rival SABMiller will receive regulatory approval. The company said that it reached an agreement as part of the acquisition terms to sell SABMiller's 58 percent stake in MillerCoors, a US joint venture, to its other shareholder, Molson Coors Brewing Company for $12 billion. Molson Coors said that the transaction is a "game changing opportunity" and will "strengthen" its position within the "highly attractive" beer market. The transaction will also "enhance global competitive, unlock further operational synergies and improve tax efficiency."