In response to the offer Anheuser-Busch InBev (BUD, Financial) made Tuesday, the board of SABMiller PLC (LSE:SAB, Financial) encouraged shareholders to approve the offer increase of 45 pounds ($59) per share. The recommendation was announced Friday following China’s regulatory approval of the deal.
China’s approval marks the last major regulatory hurdle for the merger to occur. Now, it is up to the shareholders to consent to the offer.
Anheuser-Busch increased the bid due to the decline of the pound in the aftermath of Britain’s decision to leave the European Union last month. In addition to the price increase, AB proposed an alternative plan for shareholders to receive restricted shares instead of cash.
The offer won the support of SABMiller’s two largest shareholders, U.S. tobacco company Altria Group Inc. (MO, Financial) and Colombia’s Santo Domingo family, as both plan to take the cash-and-share proposal.
The merger would create an industry giant, accounting for 30% of global beer sales. Anheuser-Busch, the world’s largest brewer, would benefit from a greater presence in Africa and Latin America.
Disclosure: I do not own stock in any companies discussed.
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