Two giants in the beer industry struggle to finalize terms of merger agreement.
A new deal is in the works that will potentially combine two of the world’s largest brewers, but the deadline has arrived and no terms have been finalized.
According to a report from Fortune, the aforementioned deal would combine AB InBev, containing Budweiser, Stella Artois and Beck’s, with SABMiller, which consists of Miller, Coors and Peroni. The companies have requested a one week extension for the over $100 billion deal.
Two weeks ago the companies have agreed on some of the key terms of a takeover bid from AB InBev, but the offer still needs to be presented to SABMiller shareholders if terms are agreed upon.
The deal is expected to benefit both parties, and AB InBev hopes to embody SABMiller’s strength in emerging markets like Africa, where beer consumption greatly trails the global average.
The two brewers will most likely be approved by the U.K. group that oversees takeovers, but there is some doubt that the U.S. will approve of the deal without divestitures, due to the companies’ large shares in the beer market.