SAB Becomes #2 Brewer with Miller Purchase

May 30, 2002

South African Breweries Plc agreed to buy U.S. beer giant Miller Brewing in a $5.6 billion deal to catapult the enlarged group to number two in world brewing behind Anheuser-Busch, reports Reuters.

London-based SAB is paying $3.6 billion in shares to Miller’s owner, Philip Morris, and assumes Miller’s two billion dollardebt. Philip Morris will gain a 36-percent economic interest in the enlarged brewer, to be called SABMiller Plc.

Moderator Comment: What will be the impact of this deal for SAB, Miller and the broader beer retailing marketplace?

Miller Brewing’s problems haven’t resulted from a lack
of funds. It will be interesting to see if this deal lifts Miller or simply
results in a combined SABMiller facing greater operating pressure. [George
Anderson – Moderator

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