South African Breweries said on Tuesday that its takeover of Miller Brewing to create the world’s second largest brewer has been completed.
”Miller has now become a wholly owned subsidiary of SAB,” the company said in a statement.
The name of the new entity is SABMiller, which will continue to be listed in both London and Johannesburg.
In the deal announced in late May, SAB agreed to pay $3,6-billion with 430-million shares to Miller’s owner Philip Morris and take on $2-billion in debt, giving the Marlboro cigarette owner and Kraft foods group 36% of SABMiller.
The deal is a sharp departure from SAB’s drive into developing economies but it gives it crucial access to a mature market where it can earn hard earnings, lessening its dependence on the struggling rand.
”As the world’s second largest brewer by volume, SABMiller is a leader in the global brewing industry and is attractively positioned for further market developments,” said SABMiller Chief Executive Graham Mackay. – Reuters