Budweiser maker finalizes $107 billion bid for SABMiller


Anheuser-Busch InBev Seals $105 Billion Deal for SABMiller

LONDON (AP) — Budweiser maker Anheuser-Busch InBev on Wednesday announced a final agreement to buy SABMiller for 71 billion pounds ($107 billion), in a deal that will combine the world's two biggest brewers and create a company that makes almost a third of the beer consumed worldwide.

In an effort to assure regulatory approval of the transaction, SABMiller agreed to sell its 58 percent stake in a venture with fellow brewer Molson Coors for $12 billion. The deal, which also includes rights to the Miller brand name worldwide, should ease concerns that AB InBev would have a stranglehold on the U.S. market after the merger.

SEE ALSO: Fox moderator Maria Bartiromo was booed for praising Hillary Clinton's resume

Click through to see photos of beers merging:

10 PHOTOS
Anheiser-Busch InBev, SABMiller merger (Budweiser)
See Gallery
Budweiser maker finalizes $107 billion bid for SABMiller
A barman opens a bottle of Peroni beer, brewed by SABMiller Plc, in The Capitol, a JD Wetherspoons Plc public house, in this arranged photograph in London, U.K., on Tuesday, Oct. 13, 2015. Anheuser-Busch InBev NV agreed to buy SABMiller Plc for almost 69 billion pounds ($106 billion) to clinch a record industry deal after several rejections, creating a brewer that will account for a third of all beer sales globally. Photographer: Simon Dawson/Bloomberg via Getty Images
NEW YORK, NY - OCTOBER 09: A bar tender pours a glass of Miller High Life beer at a bar on October 9, 2015 in New York City. Budweiser's parent company AB InBev is attempting to buy SABMiller. (Photo by Andrew Burton/Getty Images)
NEW YORK, NY - OCTOBER 09: In this photo illustration, Bud Light beer and Miller High Life beer are sold in a grocery store on October 9, 2015 in New York City. Budweiser's parent company AB InBev is attempting to buy SABMiller. (Photo by Andrew Burton/Getty Images)
Bottles of Budweiser beer, brewed by Anheuser-Busch InBev NV, and bottles of Peroni beer, brewed by SABMiller Plc, sit in an ice bucket in The Capitol, a JD Wetherspoons Plc public house, in this arranged photograph in London, U.K., on Tuesday, Oct. 13, 2015. Anheuser-Busch InBev NV agreed to buy SABMiller Plc for almost 69 billion pounds ($106 billion) to clinch a record industry deal after several rejections, creating a brewer that will account for a third of all beer sales globally. Photographer: Simon Dawson/Bloomberg via Getty Images
A glass of Castle brand beer, a SABMiller Plc drinks brand, sits in a bar in Johannesburg, South Africa, on Wednesday, Sept. 30, 2015. Anheuser-Busch InBev NV is lining up banks including Bank of America Corp. and Banco Santander SA to arrange as much as $70 billion in financing as it prepares to make a takeover proposal for SABMiller Plc, according to people familiar with the matter. Photographer: Kevin Sutherland/Bloomberg via Getty Images
An employee restocks shelves with Castle brand beer, produced by SABMiller Plc, at a Durban City Bottle store in Durban, South Africa, on Monday, Oct. 12, 2015. Anheuser-Busch InBev NV has discussed raising its takeover bid for SABMiller Plc to about 43 pounds ($66) a share, a level that leaves the two sides at odds days before a deadline for a formal offer, people familiar with the discussions said. Photographer: Kevin Sutherland/Bloomberg via Getty Images
Bottles of Anheuser-Busch InBev NV Budweiser brand beer, right, are arranged for a photograph in a cooler alongside SABMiller Miller brand beer in Tiskilwa, Illinois, U.S., on Wednesday, Sept. 16, 2015. Anheuser-Busch InBev NV said it intends to make an offer for SABMiller Plc to unite the world's two biggest beermakers with brands including Budweiser and Peroni and create a company that would control about half the industry's profit. Photographer: Daniel Acker/Bloomberg via Getty Images
NEW YORK, NY - OCTOBER 09: In this photo illustration a Budweiser beer and Miller High Life beer sit at a bar on October 9, 2015 in New York City. Budweiser's parent company AB InBev is attempting to buy SABMiller. (Photo by Andrew Burton/Getty Images)
Bottle of Carling Black Label, Hansa and Castle beer, brewed by SABMiller Plc, sit for sale at a bottle store in Johannesburg, South Africa, on Thursday, Oct. 1, 2015. Anheuser-Busch InBev NV is lining up banks including Bank of America Corp. and Banco Santander SA to arrange as much as $70 billion in financing as it prepares to make a takeover proposal for SABMiller Plc, according to people familiar with the matter. Photographer: Kevin Sutherland/Bloomberg via Getty Images
NEW YORK, NY - OCTOBER 09: A bar tender pours a glass of Miller High Life beer at a bar on October 9, 2015 in New York City. Budweiser's parent company AB InBev is attempting to buy SABMiller. (Photo by Andrew Burton/Getty Images)
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

The combined company — which as yet does not have a name — will also need to address regulatory issues in China, where SABMiller had a leading position with a 49 percent stake in the Chinese beer Snow. China is the focus of intense interest, as it already drinks a quarter of the world's beer.

"This combination would create the first truly global brewer," AB InBev Ceo Carlos Brito told reporters in a conference call after the deal, which is set to be completed next year.

AB InBev is seeking to bolster growth by acquiring SABMiller's businesses in Africa and Asia as changing tastes and the growth of craft beers cut sales in developed markets. The two companies own hundreds of brands, including Budweiser, Corona, Grolsch and Stella Artois, and AB InBev expects to cut costs by $1.4 billion after the takeover.

"The transaction would strengthen AB InBev's position in key emerging regions with strong growth prospects such as Asia, Central and South America, and Africa," AB InBev said in a statement. "These regions have hugely attractive markets and will be critically important to the future success of the Combined Group."

AB InBev and SABMiller had twice extended the deadline for a formal offer after reaching an agreement in principle on Oct. 13.

One of AB InBev's prizes in creating a global beer company will be to gobble up SABMiller's footprint in Africa. In a conference call with reporters, Brito made note of the potential for growth on the continent, where the middle class is growing.

SABMiller is the descendant of South African Breweries and has stretched its reach across the continent, betting that Africans will shift to higher quality beers as economic development increases disposable income. It had operations in 17 countries on the continent, with another 21 covered by Castel Group, in which it has a stake.

That foresight made SABMiller attractive to AB InBev, already the world's biggest beer maker, as it joins the list of international companies seeking to cash in on the newest growth frontier.

"This is all about growth," Brito said, "And we're very excited about prospects."

RELATED: See more Budweiser and their world famous clydesdales

20 PHOTOS
Budweiser Clydesdales
See Gallery
Budweiser maker finalizes $107 billion bid for SABMiller
MINNEAPOLIS, MN - JULY 15: The Budweiser Clydesdales parade around the field prior to the 85th MLB All-Star Game at Target Field on July 15, 2014 in Minneapolis, Minnesota. The American League defeated the National League 5-3. (Photo by Mark Cunningham/MLB Photos via Getty Images)
ST LOUIS, MO - OCTOBER 12: The Budweiser Clydesdales circle the field during pre-game ceremonies prior to Game Two of the National League Championship Series between the St. Louis Cardinals and the San Francisco Giants at Busch Stadium on October 12, 2014 in St Louis, Missouri. (Photo by Jamie Squire/Getty Images)
JERSEY CITY, NJ - JULY 04: The world famous Budweiser Clydesdales (celebrating their 81st anniversary with Anheuser-Busch) appear at the Freedom & Fireworks Festival in Liberty State Park on July 4, 2014, where Budweiser also presented a $3 million donation to the Folds of Honor Foundation to benefit families of military killed or disabled in action. (Photo by Noam Galai/Getty Images for Budweiser)
BRISTOL, TN - AUGUST 23: The Budweiser Clydesdales walk on the track prior to the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo by Tom Pennington/NASCAR via Getty Images)
JERSEY CITY, NJ - JULY 04: The world famous Budweiser Clydesdales (celebrating their 81st anniversary with Anheuser-Busch) appear at the Freedom & Fireworks Festival in Liberty State Park on July 4, 2014, where Budweiser also presented a $3 million donation to the Folds of Honor Foundation to benefit families of military killed or disabled in action. (Photo by Noam Galai/Getty Images for Budweiser)
The Budweiser Clydesdales parade in front of the grandstand prior to the 139th Preakness Stakes at Pilmico Race Course in Baltimore on Saturday, May 17, 2014. (Robert K. Hamilton/Baltimore Sun/MCT via Getty Images)
NEW YORK, NY - OCTOBER 29: The Budweiser Clydesdales walk through Times Square during the USOC 100 Days Out 2014 Sochi Winter Olympics Celebration at Times Square on October 29, 2013 in New York City. (Photo by Rommel Demano/Getty Images for USOC)
ST LOUIS, MO - OCTOBER 27: The Budweiser clydesdale horses walk on the field prior to Game Four of the 2013 World Series between the Boston Red Sox and the St. Louis Cardinals at Busch Stadium on October 27, 2013 in St Louis, Missouri. (Photo by Ronald Martinez/Getty Images)
Lead Budweiser Clydesdale horses, 'Kelso,' left, and 'Pops,' stretch out before leading a hitch of six other Clydesdales on a public tour around the Anheuser-Busch tour center parking lot in Ft. Collins Wednesday afternoon. The Anheuser-Busch West Coast traveling hitch got a break from a strenuous travel schedule Wednesday to strut their stuff after returning from Los Angeles after filming a Super Bowl commercial. Hundreds of horse lovers gathered to get a rare glimpse of the team that used to be based in Ft. Collins, but now their stables and training program resides in New Hampshire. Andy Cross,The Denver Post (Photo By Andy Cross/The Denver Post via Getty Images)
Driver of the Budweiser Clydesdale hitch, Dennis Knepp, sits high atop the wagon along with 'Brady' the Dalmatian while leading eight Clydesdales on a public tour around the Anheuser-Busch tour center parking lot in Ft. Collins Wednesday afternoon. The Anheuser-Busch West Coast traveling hitch got a break from a strenuous travel schedule Wednesday to strut their stuff after returning from Los Angeles after filming a Super Bowl commercial. Hundreds of horse lovers gathered to get a rare glimpse of the team that used to be based in Ft. Collins, but now their stables and training program resides in New Hampshire. Andy Cross,The Denver Post (Photo By Andy Cross/The Denver Post via Getty Images)
Assistant superintendent for the west coast Budweiser Clydesdale team, Roman Raber, prepares eight Clydesdales for a public tour around the Anheuser-Busch tour center parking lot in Ft. Collins Wednesday afternoon. The Anheuser-Busch West Coast traveling hitch got a break from a strenuous travel schedule Wednesday to strut their stuff after returning from Los Angeles after filming a Super Bowl commercial. Hundreds of horse lovers gathered to get a rare glimpse of the team that used to be based in Ft. Collins, but now their stables and training program resides in New Hampshire. Andy Cross,The Denver Post (Photo By Andy Cross/The Denver Post via Getty Images)
ST LOUIS, MO - OCTOBER 14: The Budweiser clydesdale horses walk by the outside of stadium prior to the St. Louis Cardinals hosting the Milwaukee Brewers during Game Five of the National League Championship Series at Busch Stadium on October 14, 2011 in St Louis, Missouri. (Photo by Jamie Squire/Getty Images)
ST. LOUIS, MO -SEPTEMBER 6: The Budweiser Clydesdales make their way around the warning track prior to the St. Louis Cardinals playing against the Milwaukee Brewers at Busch Stadium on September 6, 2011 in St. Louis, Missouri. The Cardinals beat the Brewers 4-2. (Photo by Dilip Vishwanat/Getty Images)
A Clydesdale is prepped for a Budweiser commercial in Los Angeles, California, on November 18, 2008, for Super Bowl XLIII. (Photo by Budweiser/MCT/MCT via Getty Images)
The Budweiser Clydesdales trot past fans during the opening day ceremonies before the St. Louis Cardinals season opener against the New York Mets at Busch Stadium in St. Louis, Missouri, Sunday, April 1, 2007. (Photo by Zia Nizami/Belleville News-Democrat/MCT via Getty Images)
HOMESTEAD, FL - NOVEMBER 19: The NASCAR Busch Series championship trophy is delivered by the Budweiser Clydesdales, prior to the start of the NASCAR Busch Series Ford 300 on November 19, 2005 at the Homestead Miami Speedway in Homestead, Florida. (Photo by Rusty Jarrett/Getty Images)
ATLANTA - JUNE 25: Brian Jordan #33 of the Atlanta Braves warms up as the Budweiser Clydesdales parade around the field between innings of a game against the Baltimore Orioles at Turner Field on June 25, 2005 in Atlanta, Georgia. The Braves won the game 5-4. (Photo by Scott Cunningham/Getty Images)
392775 02: Boxer George Foreman plays with Brutus, one of the Budweiser Clydesdale horses, February 24, 2001 at Busch Gardens Tampa Bay in Tampa, FL. (Photo by Aimee Jeansonne Becka/Busch Gardens via Getty Images)
Budweiser beer co. sr. brand mgr. and son of CEO, August Busch IV, holding the reins to one of Budweiser's Clydesdale horses. (Photo by David E. Klutho/The LIFE Images Collection/Getty Images)
JAN 26 1987; Joe Ortega; Budweiser Clydesdale Witch; (Photo By Lyn Alweis/The Denver Post via Getty Images)
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

More on AOL.com:
Myanmar's Suu Kyi wins seat, requests meeting with military
Transgender veteran's selfie sends powerful message to society
Recap: Following the Republican debate
Read Full Story