AB InBev and SABMiller merger to create beer giant

A proposed takeover by Anheuser-Busch InBev, the world's largest brewer, of rival SABMiller Plc is expected to create a colossus producing a third of the world's beer, and the market leader in China.

The combined group would have a market value of around $275 billion at current prices, and would combine AB InBev's strengths in Latin America with SABMiller's edge in Africa, as well as their breweries in Asia.

The London-based SABMiller, the world No 2 and maker of more than 200 beers including Peroni, Grolsch and Pilsner Urquell, said on Wednesday that it had been informed that AB InBev intended to make an offer which it would have to do by Oct 14 under United Kingdom rules. SABMiller is likely to consider the offer, if it provides good value for its shareholders, said sources close to the development.