The GBP71bn Anheuser-Busch InBev-SABMiller merger deal process is inching forward as both the companies have reached a final agreement.
However, the deal is yet to gain approval from regulators and shareholders. Post clearances, the deal is slated to be completed in the second half of next year.
The final agreement brings an end to months of negotiations between the two drink giants during which the takeover panel allowed for three extensions beyond its usual limit on mergers and acquisitions.
Initially, the proposal began with Anheuser Busch InBev making two offers, the first at £38 per share and the second at £40 per share in cash. Both these offers did not appeal to SABMiller, which was awaiting a better deal.
Then the Belgium-based beverage maker revised his proposal to pay £44 a share in cash as well as offered a partial share alternative option for 41% of the stake owned by two largest shareholders of SABMiller's - Altria and BevCo.
AB InBev had time until 5pm on 14 October to make an official bid. SABMiller had in total rejected AB InBev's five proposals, which also included a price of £43.50-a-share.
This deal would mean that the merged entity would produce one out of every three beers globally and would be one of the sixth largest acquisitions in history and the biggest deal in a year that had seen several mergers and acquisitions across several industries.
The merged entity would have annual sales of $73.3bn, making it three times more than competitor Heineken, reported The Associated Press.
The combined entity will have complementary geographical footprints and brands with operation in every major beer market, including strong growth markets of Africa, Asia, and Central and South America.