LONDON—Budweiser brewer Anheuser-Busch InBev raised its takeover bid for SABMiller to 70.4 billion pounds ($108.2 billion) Monday in its latest effort to win backing for its plan to create “the first truly global beer company.”
AB InBev has been trying for nearly a month to get its hands on SABMiller but its previous offers have met with resistance. It will be hoping that its latest offer, which values SABMiller at 43.50 pounds ($66.76) a share—3.2 percent more than its previous bid and 14 percent higher than its initial offer—will finally win the day.
SABMiller declined to comment on the fresh offer.
Shares of London-based SABMiller rose 1 percent to 37 pounds ($56.78) a share on reports of the improved bid.
Were an agreement to eventually emerge, the combined company would have 31 percent of the global beer market, dwarfing the next biggest player, Heineken, which has 9 percent of the market. A combined company would have total annual sales of $73.3 billion.
Market leader AB InBev already has six of the world’s largest beer brands. In addition to Budweiser, it owns include Stella Artois and Beck’s. SABMiller, which is based in London, is the maker of rival brand Miller Genuine Draft, along with other names like Peroni and Milwaukee’s Best.
Crucially for AB InBev, a deal would allow it to venture out more into the African and Australian markets where its might has yet to be felt in the way it is in Europe, North Africa and Asia.
Tensions between the two companies have risen since the first offer was announced Sept. 16, with AB InBev accusing SABMiller’s board of failing to engage meaningfully in negotiations. SABMiller has argued that the previous offers undervalue the company.
