Investors flocked to SABMiller, making it the FTSE's biggest riser after news broke this morning that the world’s two biggest beer-makers had agreed in principle a takeover worth £44 a share to SABMiller shareholders, just one day before the 14 October deadline.
SABMiller said in a statement released this morning:
The board of SABMiller has indicated to AB InBev that it would be prepared unanimously to recommend the all-cash offer of GBP 44.00 per SABMiller share
The deal comes after several increasingly sweetened offers from AB InBev that have been rebutted by SABMiller. The suitor offered £43.50 a share just yesterday, at a 48 per cent premium on SABMiller’s share price before the possible offer was made public.
SABMiller shares have soared on the news, rising nine per cent in morning trading to make it the FTSE's leader. AB InBev shares, meanwhile, were largely unchanged.
The British brewer's shares have leapt since confirming in mid-September that rival Anheuser-Busch InBev would be making an offer.
The deal between the two brewers will create a company with a market capitalisation of £162bn.
AB InBev had until 5pm on 14 October to make its offer.